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UK house prices are predicted to fall around 9% between now and Autumn 2024 before bouncing back, says the OBR. The information offers respite for first-time buyers, following recent sharp rises in property prices. However, the cost of a mortgage is likely to remain noticeably higher for the duration of this period, with an average 5-year fixed deal currently has an interest rate of around 6%.

According to the minutes of the FOMC meeting released on Wednesday, Federal Reserve officials expect to switch to smaller rate increases ‘soon’. Markets widely expect the next rate hike in December to be 50 basis points. However, despite signalling that less severe moves are ahead, the Fed stated it still sees few signs of inflation cooling. While the pace of rate hikes will likely fall, the terminal funds rate may have increased, with recent statements indicating it could plateau over 5% in 2023.

Black Friday sales bounced back this year, at higher levels than 2021. While it was believed that the current cost of living would dampen retail activity this winter, Barclaycard Payments note a 3.2% rise in transactions since last year. Footfall is up this year, in the absence of covid restrictions, but is still below pre-pandemic levels. Currys stated that energy efficient products led sales, as customers look to save on already-high energy bills.