Will home prices rise in 2023?

Morgan Stanley, for its part, recently made a more dramatic change to its 2023 outlook. While its analysts previously expected home prices to fall for the year, they now say prices could rise by up to 5%. The reversal, made in a research note earlier this week, comes as mortgage rates continue to rise.

How much will the UK rate fall in 2024?

We are forecasting price falls of -3.0% next year, as the base rate is expected to stay at its current peak well into 2024. However, when the Bank begins to cut rates in the second half of 2024, there will be more capacity for growth, with our UK 5 year figure at 17.9% (compared to last year’s 2023-2027 figure of 6%).

What will happen to mortgage transactions in 2026?

Mainstream transactional activity is expected to pick up from next year, with both mortgaged home movers and first time buyers increasing activity. By 2026, transactions will return to c.1.16 million per year, and will stay at that level until 2028, with only mortgage buy-to-let activity remaining muted.

Will the gap between wages and inflation narrow in 2023?

The gap between wages and inflation, according to Nomisma's calculations, was -9.6 per cent at the end of 2022 and will not narrow in 2023, causing greater difficulties in repaying mortgages by Italian households and worsening the climate of confidence and consequent purchase intentions.