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...While UK and the US mortgage rates have ticked up in February, they remain well below national peaks reached in 2023....
...The data, a snapshot of the health of the housing market, suggests the residential market is recovering as the squeeze from higher borrowing costs seen over the past two years eased....
...This should support residential investment going forward: recall that the single-family sector is a bigger driver of GDP growth than multi-family....
...Mortgages for house purchases, or remortgages, were down 21 per cent, while new lifetime, or equity release, mortgages were down 40 per cent....
...This means interest charges exceed the regular payments of borrowers, adding to the principal. The Big Six should be able to weather the storm. Unemployment has remained relatively stable....
...Over the past few years UK policymakers have explored the idea of mortgages with an interest rate locked in for the term of the loan, along the lines of long-term products offered in countries like the US...
...Mortgage rates have eased from their 2023 highs, allowing more buyers to consider a purchase. Mortgage approvals hit 55,000 in January 2024, up from 44,000 in September 2023....
...“Recent stock market gains have enhanced the purchasing power of higher-end consumers,” says Jonathan Miller, professor of residential real estate at Columbia University in New York....
...This prompted some lenders to increase their mortgage rates in February....
...He added that households had more scope to make mortgage payments since wages were rising faster than the rate of inflation....
...As gains from the sale of someone’s principal or sole residence are tax free, the cash generated by downsizing will also be free from tax....
...Tom Bill, head of UK residential research at estate agency Knight Frank, said: “The economic data has fluctuated since Christmas but the direction of travel for the housing market is up as mortgage rates...
...Neal Hudson, housing market analyst at Residential Analysts, said: “There would be a greater risk of negative equity obviously with this, you’d also be paying a premium mortgage rate, and it doesn’t necessarily...
...“Sellers are having to continue to rein in their price expectations,” says Lucian Cook, head of UK residential research at estate agent Savills....
...About 1.5mn fixed-rate mortgage deals are set to expire this year. Greater competition in the mortgage market will be helpful to borrowers....
...HSBC has become the latest lender to raise its residential mortgage rates following similar moves by Santander, NatWest and Nationwide in recent weeks....
...Tom Bill, head of UK residential research at estate agency Knight Frank, said more buyers and more houses being marketed as mortgage rates eased meant “demand and activity levels will only get stronger,...
...Big lenders Barclays and Santander announced fresh mortgage rates cuts this week, adding to cuts by HSBC and Halifax last week....
...NatWest on Thursday became the latest big high-street lender to cut rates across its residential and buy-to-let range, following reductions by HSBC on Wednesday....
...Mortgage rates have been rising in Germany as in most other European countries reflecting the increase in interest rates by central banks....
...rate cuts announced last week by HSBC, Halifax and Leeds Building Society across their residential lettings”....
...UK house prices rose more than expected in January, according to mortgage provider Nationwide, as easing mortgage rates helped to stabilise the property market....
...Mortgage rates have stabilised since late last year after the Bank of England held interest rates....
...Few property analysts expect mortgage rates to fall quickly next year....
...Sellers of UK residential property are expected to rein in lofty price expectations this year as buyers remain cautious despite falling mortgage rates, according to agents and housing market experts....
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