When will interest rates go down?

It's been positive of late with inflation dropping more than anticipated last month it could mean that we are starting to hit a peak with interest rates, although it is expected that we may see two more marginal increases from the Bank of England base rate in the near future. Therefore I do not see interest rates dropping until next year although it is already great to see big Banks already reducing their interest rates in recent weeks I don't think we are out of the woods just yet. The good news for homeowners and first time buyers is that rates are likely to hold steady in 2024 and hopefully by the end of next year we may see considerable reductions in rates, we hope!

I think the Bank of England will slowly lower the base rate once inflation is below 5% and they're confident it will continue to fall towards the target of 2 percent. The political and economic pressure to do so will be overwhelming. So possibly in the last quarter of 2023 but probably more likely early next year. Longer term, my best guess is the new normal for mortgage rates will be around 4.5 to 5 percent, with the base rate around 4 percent.