UK Mortgage Rate hit 15yr high....who will huat big big Sia?

[k1976]

Mortgage rates in Britain hit 15-year high — with many fearful there’s more misery to come​

PUBLISHED TUE, JUL 11 20236:49 AM EDT

Sam Meredith@SMEREDITH19
WATCH LIVE
KEY POINTS

• The average level of a two-year fixed deal now stands at 6.66%, according to figures from data provider Moneyfacts, a modest increase from Monday.
• It means mortgage costs are now at their highest level since August 2008 during the global financial crisis.
• “We suspect that higher mortgage rates will contribute to weaker economic activity in early-2024, and we are now not ruling out a technical recession in the first half of next year,” said Matthew Ryan, head of market strategy at global financial services firm Ebury.

 

[k1976]

https://www.cnbc.com/2023/07/11/uk-...-hits-6point66percent-highest-since-2008.html

 

[k1976]

Further misery on mortgage holders’​

Matthew Ryan, head of market strategy at global financial services firm Ebury, said Tuesday that financial markets were pricing in a peak in U.K. interest rates of around 6.35% in the first three months of 2024, up from 5% currently.

This “would surely make the BoE the most hawkish major central bank in the world between now and then,” Ryan said.
“We think that markets are slightly ahead of themselves, although we do expect another 50 basis point hike from the [Monetary Policy Committee] in August, with a real risk that the base rate tops out above 6%.”

He said this is “set to heap further misery on mortgage holders, particularly as 700,000 fixed term contracts are set to expire in the second half of 2023 alone.”
“We suspect that higher mortgage rates will contribute to weaker economic activity in early-2024, and we are now not ruling out a technical recession in the first half of next year,” Ryan added.