Rightmove comment on Bank of England rate hold

Matt Smith, Rightmove’s mortgage expert says: “Today’s decision to hold the Base Rate will give some welcome short-term certainty to movers, and some recent easing in geopolitical tensions has helped to improve market sentiment, though the outlook remains sensitive to global events. There is now more limited pressure for mortgage rates to increase, and we may see lenders continue to gradually reduce rates in the coming weeks if this stability continues, with the average two-year fixed rate currently just above 5%.

“However, borrowing costs are still higher than many buyers have been used to, and remain a key factor shaping market behaviour. Our latest House Price Index shows that asking prices have dipped this month, with sellers responding to more price-sensitive buyers and increased competition.”