21 Apr Are ultra-low interest rates soon to be back? Quite possibly, according to the IMF
The International Monetary Fund (IMF) shared in their latest April report that they predict ultra-low interest rates are set to return to the UK in the short- to medium-term. Banks and building societies are expected to cut the costs of fixed-rate mortgages as inflation falls sharply in the coming months. This could be great news for many potential buyers who had their dreams recently crushed, as it may make buying a property once again affordable and accessible.
If you’re looking for a property to buy in Slough and the surrounding area, make sure you give the leading estate and lettings agents in Colnbrook a call on 01753 683000or email us and we’ll help you find your next place to call home.
A positive development for buyers and sellers?
The IMF predicts that banks and building societies will have to look to cut the costs of fixed-rate mortgages in the short- to medium-term as inflation is expected to fall sharply in the coming months.
“Recent increases in real interest rates are likely to be temporary. When inflation is brought back under control, advanced economies’ central banks are likely to ease monetary policy and bring real interest rates back towards pre-pandemic levels,” the IMF economists have said.
The so-called “natural” rates of interest, which anchor monetary policy and neither stimulate nor discourage economic activity, “will remain low in advanced economies or decline further in emerging markets,” the report concluded.
These quotes from the IMF suggest that the return of ultra-low interest rates could be just around the corner, which is good news for those looking to buy a property. If you’re looking to buy or sell now, it could be the best time to do so. If you’re looking for a property to buy in Slough and the surrounding area, make sure you give the leading estate and lettings agents in Colnbrook a call on 01753 683000or email us and we’ll be happy to help.
Spring to summer is traditionally a good time to move anyway, as the weather is nicer and the days are longer, making it easier to view properties and pack up and move. Additionally, now with the possibility of the return of ultra-low interest rates, there may be a window of opportunity to secure a fixed-rate mortgage at a lower cost than has been available in recent months, making buying a property more affordable and accessible for those who have been priced out of the market by the constantly rising costs.
The housing market has been buoyant over the recent years, as we have all experienced, with low interest rates, a stamp duty holiday and changing work patterns leading to increased demand for property. The return of ultra-low interest rates could provide further stimulus to the market, leading to even more activity and growth than originally anticipated for this year. If you’re looking to sell, this could be a great time to take advantage of increased demand and potentially secure a higher price for your property.
For potential buyers, the prospect of lower mortgage costs is certainly a reason for optimism. However, it’s important to remain vigilant and stay informed about any changes to interest rates or the wider economic environment that could impact the housing market. Working with an experienced estate agent, such as ourselves, we can help you navigate the current market conditions and find the right property for your needs.
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If you are looking for your next property to rent or buy in Slough or the surrounding areas or you are looking to let or sell your property, we are the leading independent sales and letting agents in Colnbrook and are location experts. You can contact us on 01753 683000 or email us. You can also follow us on Facebook, LinkedIn, and Instagram.