Despite the Bank Of England's decision to maintain the base rate at 5 per cent, IFAs are predicting further rate cuts before the year is out.
London & Country Mortgages senior manager Patrick Bunton predicts: "Rates may possibly change by the end of the year but I do not think they will change for a few months."
John Charcol technical manager Ray Boulger says: "It was no major surprise the monetary policy committee didn't change the rate. But I expect more cuts this year by at least 0.25 per cent if not by 0.5 per cent."
Bunton believes the MPC decision will help bring some stability to the housing market. He says: "The market is busy at the moment and if interest rates continued to fall the market was in danger of overheating."
He points to property inflation showing some real extremes with some extraordinary price increases in some areas of the market skewing the overall average.