Recently, Jade Pinkerton, senior mortgage and protection advisor at Oportfolio Mortgages attended the Coutts and Savills Market Update webinar. As expected, interest 2024 and 2025 mortgage interest rates and differing predictions were discussed in great detail. Interest rates have been a hot topic for homebuyers and investors alike over the past year, and the message from the Coutts market update was clear: we’re not going back to ultra-low mortgage rates any time soon. But there’s still plenty of reason for optimism. In this blog I will give an overview of what was discussed in the webinar.
Near-Zero Interest Rates Are Gone: 2025 Mortgage Interest Rates Predictions
During the pandemic, we saw emergency-level base rates near zero, which spurred a flurry of home-buying activity. However, those rates were a reaction to a struggling economy, and while they made borrowing cheaper, they weren’t sustainable. Mortgage rates are now settling into a more ‘normal’ range, and the expectation is that they will level out at around 3.5% by this time next year.
The Silver Lining?
While this might seem high compared to pre-pandemic levels, a stable rate of around 3.5% will provide more predictability for buyers and investors. We’re past the worst of the rate hikes, and with the market becoming less volatile, it will also bring more liquidity and activity back into the property market. The stress tests from lenders, which have been a significant barrier for some buyers, may also ease slightly as rates become more predictable.
Be Careful What You Wish For
Although we’re not going to see a return to 1-2% mortgage rates, it’s worth remembering that these ultra-low rates were a response to an economic crisis. A return to such levels would likely mean something has gone seriously wrong with the economy again, so as frustrating as higher rates may seem, they’re a sign of a healthier, more balanced market.
Speak To A Mortgage Advisor
Whether you are looking to secure a new mortgage in 2024 or in 2025, the best place to start the journey is always by speaking to a professional mortgage advisor. At Oportfolio our team of expert brokers are here to help you to find the most competitive mortgage interest rates for your own circumstances, no matter the scenario. Call or message our team today to set up a fee free initial mortgage consultation.
