Mid-March 2024 Mortgage Market Update

Posted on: 25th March 2024 | Filled under: Property Market News
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In recent months, lending rates have been trending downward. 

However, over the last few weeks, this trend has slowed and even stalled in some cases. Surprisingly, some lenders increased rates over the previous week to ten days despite the general market consensus and expectations for both inflation easing and the likelihood of a general election within the next six months.

The prevailing belief is that the Bank of England base rates will be reduced, which will then lead to further reductions in residential mortgage lending rates.

We expect mortgage rates to start falling further over the next few weeks. A significant drop in rates is likely to quickly exert upward pressure on house prices, leading to an increase in residential owner-occupiers and investors returning to the market.

While these reductions are not likely to reach the low levels seen approximately 12 to 18 months ago, any decreases now will create a stable market level likely to instil confidence among buyers and sellers.

These insights are based on the current trends and market conditions observed in the mortgage industry, with considerations for upcoming economic and political events shaping the outlook for the mortgage market in mid-March 2024.

South Wales Property Market Predictions

Reflecting on the broader UK market trends, the South Wales property market exhibits interesting dynamics aligning with national developments.

The tempering of mortgage rates, as discussed, has a nuanced impact on regions like South Wales, where the property market is traditionally more sensitive to national economic shifts.

Here, local buyers and investors are watching the rate changes closely, anticipating a more affordable entry into the housing market.

The expectation of lowered mortgage rates might invigorate the South Wales market, leading to an uptick in demand for residential and investment properties. It’s crucial to note that areas within South Wales have varied responses; urban centres Cardiff, Swansea, and Newport should see quicker reactions to market stimuli than more rural locales. Nonetheless, the overall sentiment is optimistic, with potential buyers and sellers preparing for a more dynamic housing market in response to favourable economic conditions.

Suggested reads:

South Wales Residential Market Update – March 2024
Property Auction Sales Collapse
Real Estate Sales Are Lowest Since Pandemic
Estate Agency Sales: Lowest Since Pandemic 

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