Skip to main content

Mortgage interest rates heading to 3%

Today’s interest rate cut, from 4.5% to 3%, marks only the early stages of a phase of aggressive monetary easing which will ultimately take base rates to an all-time low of 1%. Mortgage interest rates are also heading much lower, but they will not fall as far. Over the next twelve months, expect average mortgage interest rates for new borrowers to fall to 3%.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access