Right now, even though the return of low rate mortgages seems almost mythical, there is high hope in many circles that rates will drop. However, it may take time to see a return to low rate mortgages, and in some instances, the economy will need plenty of time to completely recover. Until then, getting a low rate mortgage may be incredibly difficult for some consumers, especially those with bad credit.
“My own view is that the slowing economy will eventually reduce inflationary pressures and therefore the next move in interest rates will be down but possibly not before the end of the year. The recent decline in commodity prices reflects concerns that the credit crunch and slowing economies in the West are beginning to have a negative impact on emerging market growth,” commented Ted Scott of the F & C UK Growth and Income Fund.
“The demand from fast growing emerging economies such as China and India has been the main reason for the steep rise in commodity prices - if they have now peaked, inflationary pressures should decrease and free the MPC’s hand to provide a more accommodative monetary policy”.
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