The UK housing market has seen a significant increase in the average mortgage rates in recent months, according to a new report from Rightmove. The report, which was released on Tuesday, showed that the average mortgage rate had risen from 2.73% to 3.02% over the past three months. This is the highest level since October 2018, when the average rate was 3.12%.
The report also showed that the number of mortgages approved for purchase had fallen by 4.5% in the same period. This suggests that the rising mortgage rates are having an impact on the housing market, as fewer people are able to afford to buy a home.
The increase in mortgage rates is largely due to the Bank of England’s decision to raise interest rates in August 2018. This was the first time in more than a decade that the Bank of England had increased interest rates, and it has had a significant impact on the housing market. The higher interest rates mean that borrowers have to pay more for their mortgages, which has led to fewer people being able to afford to buy a home.
The Rightmove report also showed that the average asking price for a property in the UK had risen by 1.8% over the past three months. This suggests that despite the increase in mortgage rates, there is still strong demand for property in the UK. This could be due to the fact that wages are rising faster than inflation, meaning that more people are able to afford to buy a home.
Overall, the Rightmove report shows that the average mortgage rate has risen significantly over the past three months, and this is having an impact on the housing market. The higher interest rates mean that fewer people are able to afford to buy a home, but there is still strong demand for property in the UK. It remains to be seen how the housing market will be affected by these changes in the coming months.