In a surprising turn of events, major UK mortgage lenders have slashed fixedrate mortgage interest rates below 4, responding to economic uncertainties triggered by President Trumps global tariffs. Halifax and NatWest introduced twoyear fixed rates at 3.94, while Nationwide is offering the lowest rate at 3.89 for borrowers with up to 60 loantovalue. These reductions stem from declining swap rates, driven by expectations that the Bank of England will lower its base rate from 4.5 to counter potential recession fears. citeturn0news12

The rate cuts are part of a broader trend across the market, with lenders like Santander and Yorkshire Building Society following suit. These changes align with wider government efforts to stimulate the housing market and boost economic activity, especially as the stamp duty threshold was lowered earlier in April. citeturn0news12

In the United States, mortgage rates have been hovering in the midtohigh 6 range for several months. According to recent data, the average 30year fixed mortgage rate in November 2024 was 6.56. While this is still high by historical standards, it represents a decrease from the previous years rates, which were closer to 7. citeturn0search5

Experts predict mortgage rates will continue to trend downward in 2025. Fannie Mae forecasts that 30year mortgage rates will end 2024 around 6.60 and drop further to 6.30 by the end of 2025. citeturn0search5 Similarly, Bankrate predicts mortgage rates will fall to 6.5 by the end of next year, down 0.5 from the end of 2024. citeturn0search8

However, not all experts are optimistic. Goldman Sachs estimates that mortgage rates will stay above 6 through 2025, with the average 30year mortgage rate falling to 6.3 by the end of 2024 and slightly to 6 in 2025. citeturn0search0

The recent drop in UK mortgage rates is a response to economic uncertainties, and while it offers relief to borrowers, the broader economic implications remain to be seen. In the US, while a gradual decline in mortgage rates is anticipated, they are expected to remain above 6 through 2025. Borrowers should stay informed and consider their options carefully in this fluctuating market.