London CNN —The Bank of England raised interest rates by half a percentage point Thursday, after data this week revealed surprisingly stubborn inflation.
Many mortgage holders due to refinance their loans this year and next bought their homes when interest rates were much lower and mortgage rates were closer to 1% or 2%.
Capital Economics is forecasting a 12% decline in house prices between their August 2022 peak and 2024.
If interest rates must stay higher for longer to tame inflation, house prices could fall more sharply.
“If mortgage rates were to stay at 6% for several years, a house price fall of 25% would be likely,” Wishart said.
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we’ve, Andrew Bailey, ”, Jake Berry, Rishi Sunak, ” Simon Pittaway, Tom Bill, Knight Frank, Bill, Banks, ” Bill, “, There’s, Andrew Wishart, ” Wishart
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