Overview

• The Federal Reserve maintained its benchmark interest rate for the third consecutive meeting, keeping mortgage rates in the U.S. steady at an average of 6.76%.
• U.S. mortgage demand surged 11% week-over-week, with purchase and refinance applications both seeing significant growth as rates dipped below 7%.
• The Bank of England reduced its base rate by 0.25 percentage points to 4.25%, marking its first rate cut in two years, with further reductions predicted for 2025.
• U.K. tracker mortgage holders are projected to save approximately £29 per month, or nearly £350 annually, following the BoE’s decision.
• Despite lower rates, affordability challenges persist in both the U.S. and U.K. due to high home prices and constrained housing supply.