The lowest rate of inflation since September 2021 will strengthen calls for a Bank of England interest rate cut
Emily Williams, director of research at Savills, said: “Today’s inflation figures will give the markets more confidence that a cut to the base rate is on the horizon. If this feeds through into mortgage pricing, we expect to see transactional activity start to pick up as it did at the start of the year. Mortgage affordability is the largest challenge currently facing buyers, with mortgage approvals in March 2024 23 per cent below the pre-pandemic norm.
“Political and economic uncertainty means buyers will likely remain cautious, but the overall outlook has certainly improved, pointing to relatively modest house price growth this year. Savills revised forecast expects house prices to grow 2.5 per cent in 2024.” Nick Mendes of brokers John Charcol said: 'Today's announcement indicates that markets will likely price in a prolonged hold, meaning mortgage rates will remain around their current levels for a bit longer.
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