The Royal Institute of Chartered Surveyors (RICS) revealed a decline in prices in their monthly survey for May.
As it became apparent that the Bank would not be taking any immediate measures to lower borrowing costs—despite some progress in its fight against inflation—mortgage rates began to rise at that point.
In an attempt to slow down the rate of price growth, the Bank had set a rate of 5.25%, which had caused fixed rates to plummet at the beginning of the year.
However, since then, the word out of Threadneedle St has essentially been, “We’re [still] not there yet,” with markets now projecting that the first drop will happen in August or September.
According to news, delays in rate drop expectations have had a negative effect on buyer mood because many buyers are concerned about affordability. Rate drops have been a recurrent topic for markets in 2024.
As per the most recent statistics available from moneyfacts.co.uk, the average rate for a two-year fixed residential mortgage is 5.97%.
