Expected Mortgage Interest Rates

Altior

People can agree, disagree or be passive on the subject, but hardly anyone seems to acknowledge that globalisation means the 'open' developed economies are all correlated. It is virtually impossible to have independent monetary policy. This is probably gone forever, at least over our lifetimes. 

The UK housing market is effectively open to billions of people. There's just no way that we could ever have average property prices of 4-5X median domestic income again, because there will always be people from abroad who would step in to fulfil that demand. In the popular parts of the country. This is especially true, for obvious reasons, in English speaking countries.

It's the same everywhere else, because we've practically all followed the QE model and most countries are now extremely heavily indebted. 

If anyone doubts this, take a peak at Japan that doesn't have the same policy on immigration or monetary affairs. Or any other country that is not liberal on immigration.

There are obviously variations within that picture, but by no means is the UK the worst example, we are in the middle of the pack.

The answer to the question is therefore, we just have to wait and see what the Fed wants to do. 

ader42

We should follow Denmark’s example and ban all foreign ownership of our housing stock. 

Strummer22

ACG said:

RogerPensionGuy said:

The link below is of some interest, guessing it allows the standard plus 3% or 4% stress tests to be ignored by and large and allow people to get more bigger debt upfront to try keeping uk housing prices.

It will be intersection to see the over payments and early redemption fees if any.
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https://www.theguardian.com/money/2023/sep/07/new-uk-mortgage-lender-perenna-offers-30-year-fixed-rate-deals

Personally speaking, I think you would have to be bonkers to do this. 
Who in their right mind secured a mortgage rate for so long at what appears to be a peak.

According to the Guardian article you can exit after 5 years with no penalty - so maybe not so crazy?