According to Mugleston, there’s a strong indication that mortgage rates will gradually decrease, which is good news for those considering buying a house. Currently, two-year fixed mortgage rates are around 5.95%, and five-year fixed rates are at 5.57%, lower than before when they were 6.85% and 6.37%, respectively.
This rate drop is attributed to a 3% decrease in inflation this year. If inflation continues to decline in the coming months, we may see further reductions in mortgage rates. However, Mugleston suggests that it’s unlikely that we’ll see the meagre rates we had previously, with his analysis expecting rates to dip below 4% at the end of 2024 or even later.
So, while buy-to-let investors may wish to wait for previously low mortgage rates, it may be worth considering jumping into the market anyway, particularly if a good investment opportunity presents itself.
