Homes on Market Increase as Mortgage Rates Hit Buyers Hard

According to Zoopla, three in five homes listed for sale since January remain unsold due to high mortgage rates. Agreed sales are 7% lower than last year, with specific declines of 12% in Wales and 11% in the East Midlands. The average two-year fixed mortgage rate rose from 4.83% in March to 5.90% by April 12 before dropping to 5.54%. The Bank of England reported mortgage approvals fell to a two-and-a-half year low in May, exacerbating the demand drop from first-time buyers exposed to higher borrowing costs, particularly affecting one and two-bedroom flats.