Mortgage rates have fallen?

[MsGus]

I’m reading the news online and saw this. We were about to fix for 10 years but if there will be further falls we would rather wait. It is so confusing and unstable.

www.telegraph.co.uk/personal-banking/mortgages/mortgage-rates-drop-first-time-since-mini-budget/

As predicted, the BOE seem now to be getting the hang of what they are supposed to be doing, can`t be long until we are back at 5% base rate?

Financial Times article

www.ft.com/content/ce61d3e9-2a32-4cca-b97b-92c563f7dbef

@DeadHouseBounce the opposite Of what the Bank of England said

It’s behind a paywall- what does the article say please?

www.theguardian.com/business/2022/nov/03/bank-of-england-interest-rates-higher-uk-economy

inflation will be well below 2% within the next 2 years. By the BoE own admission. We’re going onto recession and interest rates will fall back. As I predicted. Personally I would take a tracker and extend the mortgage term, then fix on a shorter term once rates come down. Or if you have an affordable offer take a 2 year fix and remortgage on a new deal once this is over.

Ha! BOE predictions have been way off the mark so far although I agree that we are in recession. Personally, I doubt we will be back to 2% so quickly. The bank seem content to trash the £ which will cause more inflation and longer lasting inflation and likely higher rate rises next year. Bailey seems to have a bad habit of making things worse.

yes, because the BOE are good at inflation predictions!

Just to add, the interest rates are deeply negative (8% negative compared to CPI). This is a crazy situation where savers make a huge loss.

Love the certainty here!😂

There’s no reason why inflation can’t be brought back to 2% within a couple of years, but it’s going to be painful. Wage restraint or unemployment, perhaps both are required. Low interest rates 3% to 5% might work, otherwise they will go higher.

It will very likely be brought back down as the drivers are all external shocks and supply issues, which are priced in and expected to settle. This isn’t the usual inflation of a booming economy and us all being profligate. We have well below inflation wage growth and a looming recession. When this happens interest rates come down.

Oh I know there’s a few of them on here who apparently have crystal balls and frankly should be running the country because even though they are merchants of doom, they clearly have more of a grip on the financial markets then the financial markets. Spolier being of course that those who actually do know what the financial markets will or won’t do, don’t tell a living soul because they make money on it.

You really have swallowed everything the media has spoon fed you haven’t you?

As I’ve stated numerous times with my posts on here for some years now, the inflation we're seeing wasn’t caused by external issues and supply shocks, it was primarily because of this (image attached) The US printing 1/4 of the global reserve currency.

Even former BoE governor Mervyn King has stated this numerous times. Covid, supply chains and the Russian war have just been catalysts that has exasperated the situation.

That money was injected into the economy, through stimulus cheques, furlough and bounce back loans. The first things to be effected were building materials and second hand cars, as everyone was buying new cars and houses (stamp duty holiday) or stuck at home doing renovations. Covid supply chains restrictions exasperated the demand for materials and stock.
Once inflation is fed into the beginning of the pipe (logistics, haulage, manufacturing, materials, chemicals, energy, fuel) it then comes out at the consumer end later down the line.

As the other posters have said above you are deluded if you think inflation is going anywhere near 2% anytime soon. Once CPI is above 5%, it has never in history been brought back down unless rates exceed the inflation rates (10%) which they cannot do due to the debt ratio.

That means inflation is here and compounding each year for the foreseeable.

www.ft.com/content/f3bb0f96-1816-4481-8318-4f7583326a4a

Unpaywalled
12ft.io/proxy?q=https%3A%2F%2Fwww.ft.com%2Fcontent%2Ff3bb0f96-1816-4481-8318-4f7583326a4a

Sigh. I suppose insurance companies, actuaries and risk accessors go by their crystal balls too?

Its macroeconomics. Historical data and trends based on economic cycles.

The global economy isn’t based on rainbows, unicorns and whether Matt Hancock goes in the jungle or not, it’s based on the movements of reserve currency treasuries yields and debt.

Past performance is no longer an indication of future outcome, hasnt been for 20 years.

Utter tosh. The last 20 years has been utterly obscured due to trillions of QE since 2008. It’s because inflation hasn’t been a ‘thing’ for 40 years. The longest disinflation cycle in history. That has now ended.

www.investopedia.com/terms/d/disinflation.asp

The global QE experiment has now hit an inflationary cycle head on. It’s uncharted waters, but not for the good which may likely end in hyperinflation and CBDC introduction to replace the current fiat financial system.

You have precisely zero evidence that this cycle is ending now and you have precisely no indication as to what further intervention is planned.

your claims are ludicrous that we’ve gone from a 20 year cycle to a 40 year cycle, didn’t they used to be a 10 year cycle, basically you do not to know and with every post your credibility diminishes.

You’ve not even read my post and have zero understanding.

We’ve gone from a 40 year disinflation cycle into an inflationary one, I’ve even provided an article explaining that point and you have failed to comprehend basic macroeconomics.

I said the traditional boom/bust cycles (2008 was never allowed to correct) that would of occurred in the last 20 years have been distorted thanks to trillions of QE.

Your own prime minister and government is even telling you CBDCs are coming, but you are sticking your fingers in your ears like a petulant school child.

www.gov.uk/government/publications/regulation-for-the-fourth-industrial-revolution/regulation-for-the-fourth-industrial-revolution

www.bankofengland.co.uk/research/digital-currencies

www.gov.uk/government/publications/terms-of-central-bank-digital-currency-taskforce-terms-of-reference

"The global economy isn’t based on rainbows, unicorns and whether Matt Hancock goes in the jungle or not, it’s based on the movements of reserve currency treasuries yields and debt."

Exactly. Many cant or wont grasp this though, they are too brainwashed with cheap debt for so long.

Will rates go up again this week?

Yep apparently, by another .5

Will the "good" U.S inflation figures make them chance .25?