inews on Nostr: UK economy is undergoing a reset – and it's good news for your mortgage ========== ...
UK economy is undergoing a reset – and it's good news for your mortgage
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Inflation in the UK is down to the two per cent target for two months running, lower than the US or the eurozone. The Bank of England monetary policy committee is expected to cut interest rates in August or September. The cost of mortgages will be determined by inflation, short-term interest rates, and government bond yields. The general view is that inflation will stick somewhat above two per cent for the next two or three years. Short-term interest rates are expected to come down slightly, but not by much. Gilt yields have come down a little since the election, indicating comfort with Labour's expected financial policies. The UK housing market has held up well, with the ONS official house price index back up to its peak in November 2022. The economy is growing between one and two per cent a year, higher than forecasts. The medium-term change that could cap home prices is Labour's plans to allow more homes to be built. The reset in perceptions about the UK economy looks significant.
#UkEconomy #Mortgages #Inflation #InterestRates #GovernmentBondYields #HousingMarket
https://inews.co.uk/opinion/uk-economy-is-undergoing-a-reset-and-its-good-news-for-your-mortgage-3175859
==========
Inflation in the UK is down to the two per cent target for two months running, lower than the US or the eurozone. The Bank of England monetary policy committee is expected to cut interest rates in August or September. The cost of mortgages will be determined by inflation, short-term interest rates, and government bond yields. The general view is that inflation will stick somewhat above two per cent for the next two or three years. Short-term interest rates are expected to come down slightly, but not by much. Gilt yields have come down a little since the election, indicating comfort with Labour's expected financial policies. The UK housing market has held up well, with the ONS official house price index back up to its peak in November 2022. The economy is growing between one and two per cent a year, higher than forecasts. The medium-term change that could cap home prices is Labour's plans to allow more homes to be built. The reset in perceptions about the UK economy looks significant.
#UkEconomy #Mortgages #Inflation #InterestRates #GovernmentBondYields #HousingMarket
https://inews.co.uk/opinion/uk-economy-is-undergoing-a-reset-and-its-good-news-for-your-mortgage-3175859