Mortgage Rates Fall to 15-Month Low

Mortgage rates in the UK and the US have seen significant declines, with the average 30-year fixed rate falling to 6.35%, the lowest in over a year, driven by expectations of a Federal Reserve interest rate cut. In the UK, typical first-time buyers now have monthly repayments of £949, down £150 from last year, with the average five-year fixed rate at 4.76%. This decline in rates is bolstered by decreasing inflation, which has dropped to 2.2% in the UK and is at its lowest since spring 2021 in the US. While the recent drops in mortgage rates may improve affordability, challenges remain in the housing market, particularly with home prices still near record highs. Experts suggest that further rate cuts by the Fed could continue to lower mortgage rates, although a rebound in housing purchase activity is yet to materialize. Overall, the easing of mortgage rates presents a hopeful outlook for prospective homebuyers in both regions.