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.