A spokesman for the Bank of England said: "If rates fall and you have a loan or mortgage your interest payments may get cheaper. And if you have savings you may be paid less interest. If interest rates fall it's cheaper for households and businesses to increase the amount they borrow – but it's less rewarding to save."

Homebuyers shouldn't hold out for mortgage rate relief, according to Chen Zhao, Redfin's economic lead.

Mortgage rates fell sharply this week. See today’s average rates for 30-year, 15-year, and refinance loans and what could happen next.

Though tariffs have yet to accelerate price growth, it could take months for the full impact to show up in the data.