Movera’s comment on today’s inflation drop to 2%
19 June 2024
“Inflation falling to the Bank of England's 2% target is positive news for the housing market and for consumers. Though not everyone is convinced, this could lead to the Bank of England to hold or even lower the base rate tomorrow which has a direct impact on mortgage rates.”
“We've already seen mortgage rates fall this year, and whilst they are unlikely to drop below 4% any further decrease could still make buying a property more affordable, potentially stimulating buyer activity. This would be no small relief for both new borrowers, and homeowners looking to remortgage.”
“It will also be interesting to see how this interacts with the current election events with all major parties calling for action that will impact the housing market in the coming months.”
