The Bank of England recently voted to maintain interest rates at 5% during their September meeting, having reduced them in August. Encouragingly, more cuts may be on the horizon if inflation continues to ease. This is welcome news for home sellers in Lancaster as lower interest rates tend to make the housing market more attractive for buyers.
Economists forecast the Bank of England’s rate to dip slightly to 4.7% by the end of 2024, suggesting one more 25 basis point cut before the year is out. Mortgage rates have already begun to reflect these potential reductions. For example, a five-year fixed mortgage with a 75% loan-to-value (LTV) is currently available at 4.3%, down from 5.2% just a year ago. This is not far off the rate seen in September 2022, signalling that the cost of borrowing is becoming more manageable for potential buyers.
What does this mean for you, as a home seller? As mortgage rates continue to decline and competition among lenders heats up, more buyers will be able to afford homes. This could mean increased interest in your property and potentially quicker sales. Additionally, the potential for further cuts from the Bank of England, coupled with recent reductions in US interest rates, further points to a positive outlook for the housing market.
Now could be an excellent time to list your home, with conditions increasingly favourable for buyers. As the housing market changes, we are here to advise you as to what is happening, the reasons why and how at JDG we can help get you moved!
If you have any questions, please get in touch. You can email me at michelle@jdg.co.uk or call me on 01524 843322.
Thanks for reading
Michelle x
