Due to the worldwide condition and the aftermath of the pandemic inflation has become high, but as we move into the new year and throughout 2023 there are signs of lowering back to what is considered normal levels.
What DO WE KNOW?
In simple terms, buying or selling a home as interest rates rise is nothing to fear, from a historical standpoint, a 5% mortgage rate is still remarkably low. A mortgage today with a fixed rate for the next 30 years is still considerably cheaper than historical comparisons, and a return to 5-7% mortgages is something that looks like will be here to stay.
WHAT DO OUR BANKS SAY?
Not only do banks have the capacity to lend they are still keen to do so and are even making the process for applicants easier by opening up the loan criteria. Andrew Bailey, Governor of the Bank of England, suggested markets had even over-exaggerated their predictions for future rate rises. He said: “the rate will have to go up by less than currently priced into financial markets. That is important because, for instance, it means that the rates on new fixed-term mortgages should not need to rise as they have done”
THE BOTTOM LINE
Interest rates remaining near historic lows bode well for buyers, and today’s market reflects some of the cheapest debt a home buyer will be able to attain in the market.
MANAGING DIRECTOR, SARAH BARRACLOUGH SAYS:
The future is uncertain, and we don’t know what effect our economy will have on housing next year, but right now, we’re still in a market where demand is outstripping supply, and the recent rise in rates is still considered low in relation to the 30-year average.
Here at Skipton Properties, we’re proud of our desire to build a bit differently and have a robust portfolio of homes that, we hope, offer something for everyone. Location is key! And as we continue to bring our high-quality homes to new, sought-after, communities, in the long term, our bricks and mortar are still a fantastic place for you to invest!
Sarah
