Our forecast that Bank Rate will fall slower means that we now think mortgage rates will decline from 4.4% now to 3.9% by the end of 2026, rather than to 3.5%. But we still think that mortgage rates will fall by more than most expect and that house price growth will pick up from 2.5% in 2024 to 3.5% in 2025 and to 4.5% in 2026 (3.0%, 5.0% and 4.0% previously), leaving us more optimistic on house prices than most forecasters.
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