Business & Finance
London’s Newest Rates Market Specialists Are Real Estate Agents
Key Points
City Of London London’s Property Agents Are Watching Rates Markets Like Traders At a local real estate agency on London’s southeastern edge, manager Steve Brown has added a new, and rather unlikely, topic to the usual chatter with clients about house prices and commute times: swap rates. That’s because there’s a growing disconnect between the interest rate set by the Bank of England and the level determined by swaps traders in markets. The BOE, which in theory sets borrowing costs for the...
City Of London
London’s Property Agents Are Watching Rates Markets Like Traders
At a local real estate agency on London’s southeastern edge, manager Steve Brown has added a new, and rather unlikely, topic to the usual chatter with clients about house prices and commute times: swap rates.
That’s because there’s a growing disconnect between the interest rate set by the Bank of England and the level determined by swaps traders in markets. The BOE, which in theory sets borrowing costs for the broader UK economy, has held steady at 3.75% all year and yet swaps have surged, pushing average mortgage rates to around 6% in the process.