Mortgage Rates Fall Amid Inflation Decline

Recent reports indicate a decrease in mortgage rates, attributed to a drop in inflation to 2.5% in December. Average rates for 2-year fixed mortgages fell to 4.97%, while 5-year fixed rates dropped to 4.75%, as lenders aim to attract buyers during a busy season. Experts suggest that the Bank of England may consider cutting interest rates in February, further influencing the mortgage market. Concurrently, the average 30-year fixed mortgage rate is reported at 6.80%, with a decline in housing inflation to 4.6% year-over-year, the lowest since January 2022. This positive trend in inflation could improve the Federal Reserve's outlook, although rate cuts may not be imminent. As such, prospective homebuyers are encouraged to take advantage of these favorable conditions.