6% mortgage rates; trouble a'ht Mill

[Twiglets1]

This is a new 6% mortgage rates thread as the last one is almost full.

Thanks to KievLoverTwo for suggesting the second part of the title to reflect all the squabbling these threads are causing. Which could be a thing of the past of course. But realistically, it won't be.

Holding interest rates is soo boring 😂 I can’t wait for some serious interest rate action

lol - it IS boring but I guess I’ll be sad when I stop getting high interest on my savings

That is very true. The impact of interest rates is very different to different people. Pensioners have seen a big impact on their cash savings all the while interest rates trailed inflation.

Yes.

I’m not a pensioner but do have more in savings currently than in mortgage debt which is not usual for me but is for many others reaching the end of their mortgage term.

Agree with enjoying the interest on savings!
Any different predictions for tomorrow now that inflation rate is out?

Nope no change in predictions as it will be a hold and will continue to be a hold as inflation is still hot in the US.

The BoE will continue to follow the Fed as the US dollar is the reserve currency.

https://www.barrons.com/livecoverage/fed-fomc-meeting-rate-decision-powell-speech-today/card/fed-meets-as-inflation-flickers-hot-again-RNkl68J6woSTnhRBUE65

https://x.com/kobeissiletter/status/1770430745024033194?s=46

Any rate cut is a good cut as far as I am concerned. Although I am someone who has worshipped at the alter of debt (or whatever Crashy called it) having bought a house for me and my kids last year at high rates after a divorce.

He's so funny - we're debt junkies as far as he's concerned😂

No, it seems pretty certain they will stick at 5.25% for a bit longer

This is one for @CrashyTime as he's always going on about the FED.

The Federal Reserve announced on Wednesday that it would leave US interest rates at a 25-year high as it continues to assess their impact on cooling inflation and the wider economy.

After a two-day meeting, the Fed announced rates would be unchanged at 5.25% to 5.5%, where they have been since July. But the Fed signaled it still expects to cut rates three times this year.

https://www.theguardian.com/business/2024/mar/20/federal-reserve-interest-rates

It’s no different the BoE will do exactly the same or else they risk currency/treasury yield fluctuations.

I don’t know how many times I’ve had to repeat this.

You think the FED & BoE will both cut rates 3 times this year?

I agree I think they'll stick tomorrow and then the next one.

Within my world of work they are whispers that labour and the conservatives are in the ears of the people who set on the monetary committee to start thinking about cutting great whether or not it will work I don't know

https://moneyweek.com/property/ons-house-price-index-uk-inflation-falls#:~:text=The%20latest%20ONS%20figures%20show,up%20month%2Don%2Dmonth.

Higher mortgage rates will start to take effect this year

https://x.com/kashyap286/status/1770538567447515391?s=46

If the central banks cut rates whilst US inflation is still hot, it will be for political reasons and not economic.

That will be an economic policy mistake as the secondary wave of inflation will become greater and interest rates would have to return to even higher levels in the long run.

With GDP to debt ratios like they currently are, that’s when things start to break and defaults will occur.

The article doesn’t say that though. Can you quote from the bit where you think it does?

It doesn’t say that, I never said it did. I don’t rely on articles to make predictions but as you ask 1.5 million people are remortgaging this year so naturally higher rates will have an effect.

https://www.legalandgeneral.com/adviser/mortgage-club/news-and-insights/digest/articles/100000-more-remortgages-due-in-2024-than-2023/#:~:text=A%20staggering%201.5%20million%20homeowners,were%20on%20reversion%20rates*1.

I posted the previous article to underline the overall direction of prices based on the most accurate indicator aka the ONS statistics.

The Bank of England has held interest rates at 5.25 per cent for a fifth consecutive meeting.
The Monetary Policy Committee (MPC) voted by a majority of 8-1 to keep rates unchanged, it announced at noon, as almost all economists had predicted.
One member of the MPC voted to cut rates to 5 per cent.

https://inews.co.uk/inews-lifestyle/money/saving-and-banking/bank-of-england-base-interest-rate-hold-2963508?ito=push-notification&ci=naNlsdDUpO&cri=tcllwfxqDO&si=cssdIvAnxCT_&xi=56861e79-4094-4d03-8095-220d61ca36ad&ai=2963508

Bank of England Governor Andrew Bailey says it is "not yet" the time to cut interest rates. Bailey says he has seen "further encouraging signs" that inflation is coming down, but adds policymakers have to be sure that it will fall back to its 2% target and "stay there".

"We're not yet at the point where we can cut interest rates, but things are moving in the right direction," Bailey adds.

https://www.bbc.co.uk/news/live/business-68581527

🙏

And he said we would never have inflation.. and then he parroted it from the US that it would be ‘transitory’… and then he said interest rates wouldn’t need to rise…

Sigh.. we’re not at the realisation stage yet are we.

https://x.com/disclosetv/status/1767941959191028100?s=46

https://www.bloomberg.com/news/articles/2024-03-22/fed-s-bostic-now-anticipates-just-one-rate-cut-this-year

Ahem….

Article in i: Renewed hopes of a June interest rates cut

Hopes are rising of a cut to interest rates sooner rather than later after the Governor of the Bank of England hinted of a first cut to borrowing costs since 2020. Economists have suggested that a cut in the Bank’s base rate was now expected after Andrew Bailey used an interview to say a rate cut is now “in play” after the BoE’s monetary policy committee voted this week to hold interest rates for another month.

The shift in tone from the Governor has prompted some industry figures to claim that a cut could come as early as May, although the working expectation is that the first fall will be in June.

https://inews.co.uk/news/politics/renewed-hopes-june-interest-rate-cut-andrew-bailey-hint-2971347#:~:text=Bank%20of%20England%20chief%20has%20struck%20a%20more%20optimistic%20note%20this%20week&text=Hopes%20are%20rising%20of%20a,to%20borrowing%20costs%20since%202020.