Mortgage rates predicted to increase in next few days
Published On Oct 10, 2024, 6:50 AM
Recent commentary from brokers indicates that the recent decline in mortgage rates may soon reverse, as lenders like the Coventry Building Society are set to raise rates. This shift could impact the housing market, where buyer activity had increased due to lower rates. Around 1.6 million existing borrowers will face the end of their low fixed-rate mortgages this year, and first-time buyers have been optimistic about entering the market. However, predictions suggest potential increases in rates might dampen this optimism. Rising swap rates, influenced by various economic factors, signal an upcoming change in the mortgage landscape that could lead to higher costs for borrowers and additional pressure on renters due to a limited housing supply.
Stock Forecasts
XHB
Negative
With mortgage rates expected to rise, this could lead to decreased affordability for buyers, potentially cooling down the housing market. Additionally, the mortgage banking sector might see mixed performance as higher rates could lead to lower refinancing volumes.
Related News
A Trump Fix for the Housing Crisis Could Actually Make It Worse
Oct 11, 2024, 12:01 PM
The former president often implies that deportations will bring down housing costs. Reality is more complicated.
Inflation sees the lowest annual rise since 2021
Oct 10, 2024, 1:34 PM
The Consumer Price Index (CPI), the main measure of inflation, increased 0.2% in September, a similar increase consumers saw in August and July, the Bureau of Labor Statistics reported.
Mortgage rates predicted to increase in next few days
Oct 10, 2024, 6:50 AM
Recent falls in rates could come to "an abrupt halt" in the next few days, according to brokers