The housing prices having fallen fourth month in a row suggests falling mortgage rates. There is also and increase in competition for providing the best rate since the cost of living, was declared a crisis. The rates are expected to hit approximately 4% in March. Currently, the average two-year fixed mortgage rate is 5.78 per cent, while the average five per cent is slightly lower at 5.61 per cent, according to the personal finance data firm Moneyfacts. Rates have decreased by 0.21 per cent since the same time last month. If it does not fall as quickly as expected then there is a risk of a big housing downturn, which could leave people in negative equity, which occurs when the value of a property becomes less than the mortgage originally taken out for it, and can deepen a recession.
Will we go further into a recession or will we see a return to pre mini budget?