House prices and interest rates

2nd March 2010 <p>This article is based around the February 2010 Nationwide House Price Index that was released on 26th February 2010.</p> <p><a href="http://http://www.nationwide.co.uk/hpi/historical/Feb_2010.pdf">To review the entire document (pdf) click here.</a></p> <p>Rob and I still feel that medium and long term fixed rates mortgages are too expensive. However short term (2 years) fixed rates are now starting to represent better value and are more attractive.</p> <p>House prices may well fall a little in 2010 but this will not be across the board, some areas were more overvalued to start with.&nbsp; Regional differences will be seen.&nbsp; I guess things may stagnate until we have more clarity as to the result of the general election and exactly how deep the public sector cost cutting and resultant unemployment will bite.</p> <p>We expect that intersrt rates will start to increase in 2010 and may well be 1.5% higher by&nbsp;end of&nbsp;2011.&nbsp; This combined with lenders increasing their standard variable rates will bring the re mortgage market back with a crash as many borrowers try to get off expensive standard variable rates and find a decent long term fixed rates.&nbsp; The question is will the money markets be sufficiently "fixed" to offer good value long term fixed rate deals.</p> <p>Our blog site at our "Financial Freedom Club" contains much more insight into these topics.</p> <p><a href="http://http://downhambrothers.ning.com/profiles/blog/list">Click here for more information</a></p> <p>&nbsp;</p> <p>&nbsp;</p>