Mortgage Rates Fall to Multi-Month Lows in US and UK

Despite the drop in rates, conditions in the UK property market remain subdued, with future trajectory of rates uncertain.

30-year mortgage rates in the US have fallen to 7.34%, the lowest level in almost four months, continuing a three-week decline.
In the UK, the average two-year fixed-rate homeowner mortgage has dropped below 6% for the first time in nearly six months, with the average 5-year fixed residential mortgage rate also decreasing.
The drop in mortgage rates is attributed to falling inflation, base rate pauses, and reductions in swap rates.
Despite the drop in rates, UK housebuilder Berkeley Group reported that conditions in the UK property market remain subdued, with reservations for private sales running around one third lower than the levels secured throughout the 2022/23 financial year.
The future trajectory of mortgage rates remains uncertain, with any further rises in inflation, base rate, or swap rates potentially leading to a reversal.