The race to interest rate cuts has begun. What’s next for mortgage prices?

But as inflationary pressures have eased, the shadows cast last month are lifting and there are signs the market is now finding its feet in a higher mortgage rate environment. In fact, a recent survey from the Family Building Society found that 68% of mortgage advisers have seen demand increase in the past few months. Further falls in mortgage rates will help to boost the market further, but it’s important to remember that this increase in activity comes off a very low base. For example, mortgages for house purchases fell 29% in 2023, so there is a long way to go before we can say the market has recovered. So far this week, several lenders have already started to reduce rates, and there is hope that more will follow suit following the positive inflation data.