Brokers

Mortgage rates could reach ‘sub 3%’ by year end, say brokers

The mortgage market may see “sub 3 per cent rates” by the end of the year, according to some brokers.

 

Montgomery Financial founder, Charles Breen has predicted the drop in rates will be driven by “regular interest rate cuts” in the latter half of the year.

Breen was not alone with this prediction as Staton Mortgages director, Mike Staton, stated that fixed rates should reach “late 2 per cent to mid 3 per cent” by the end of the year.

These predictions follow a number of recent rate reductions from a number of different lenders, including HSBC which became the first major lender to offer sub 4 per cent rates.

These reductions may act as catalysts for more rate cuts across the market, according to Alfa Mortgages founder, Adam Smith, who said it seemed “increasingly likely” there will be widespread reductions to “maintain competitiveness”.

“There may even be bold moves by some venturing below the 4 per cent threshold to compete with institutions like HSBC,” he explained.

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