Alex Kerr, economist at Capital Economics, said rises in interest swap rates — derivative products that track interest rate expectations on which mortgage rates are based — especially since last week’s Budget, “suggest there is scope for mortgage rates to rebound and provide less support over the next few months”. However, Kerr said he expected that further ahead, mortgage rates would eventually fall and annual house price growth would accelerate from about 3 per cent in the fourth quarter this year to an above-consensus 5 per cent in the fourth quarter in 2025.