Mortgage costs could jump for millions, Bank says
Published On Nov 29, 2024, 7:22 AM
The Bank of England has reported that up to 4.4 million UK mortgage holders could see increases in their mortgage payments by 2027, with significant hikes for some homeowners. Despite the increased payments, a quarter of borrowers may experience decreases. The Bank expresses that household finances are more resilient than previously thought, with a low percentage of households struggling to make mortgage payments. While interest rates had been rising since late 2021 and have only recently started to fall, refinancing onto higher rates may affect about 2.7 million homeowners. The Bank also highlighted ongoing global economic risks, including geopolitical tensions that could impact financial stability.
Stock Forecasts
XLF
Negative
Given the increase in mortgage payments for a significant portion of homeowners, there may be negative impacts on consumer spending and housing market dynamics. Additionally, ongoing geopolitical tensions may lead to broader economic caution. However, a portion of borrowers will see reduced payments, potentially balancing out the impacts somewhat. The overall sentiment towards the banking sector remains stable, but caution is advisable given the economic risks mentioned.
Related News
Musk Calls for Abolishing Consumer Agency GOP Has Long Targeted
Nov 27, 2024, 3:03 PM
(Bloomberg) -- Billionaire Elon Musk called for eliminating the Consumer Financial Protection Bureau, highlighting the renewed threat under President-elect Donald Trump to a regulatory agency that has long been a target of Republicans and business advocacy groups.Most Read from BloombergNew York City’s ‘Living Breakwaters’ Brace for Stormier SeasIn Italy’s Motor City, Car-Free Options Are GrowingIn Traffic-Weary Toronto, a Battle Breaks Out Over Bike LanesIn Kansas City, a First-Ever Stadium Des
Key Fed inflation gauge shows PCE 'going sideways'
Nov 27, 2024, 10:49 AM
October's Personal Consumption Expenditures report is the latest data the Fed will consider in its next interest rate decision.
Fed's favored inflation gauge showed price growth picked up in October
Nov 27, 2024, 10:03 AM
The Commerce Department released data showing that PCE inflation ticked higher in October, though the Federal Reserve's preferred inflation gauge remained near last month's level.