Lenders Drop Rates As Swap Rates Stabilise

Following the election, the swift rise in swap rates led many lenders to increase their mortgage rates. This strategic move was designed to protect against potential future borrowing costs. However, as swap rates stabilised, lenders grew more confident in the market’s equilibrium. This newfound stability enabled them to reduce mortgage rates, benefiting borrowers from favourable borrowing conditions.

Lenders have introduced more competitive mortgage products, and mortgage rates are becoming lower and more predictable. This led to a significant surge in mortgage approvals, a clear sign of the market’s health and stability. It also provided homeowners with increased opportunities to refinance their loans, offering them a chance to secure better financial futures. As a result, many borrowers have enjoyed lower monthly payments and significant long-term savings.