The Bank of England recently decided to maintain the record low base rate of 0.5 per cent. This means continued opportunity for low interest rates for mortgages and remortgages. The low interest rates should continue for at least another, many analysts believe.

"Watching the incoming economic data will be more crucial than ever for the MPC in the months ahead as it judges for how much longer it needs to keep its foot right down on the accelerator pedal," said Santander chief economist Barry Naisbitt. Accompanying the latest result of the unchanging base rate, is what will inflation do. The inflation report will be published at 10:30 a.m. on August 11.

What this means to the housing market is of great importance. With interest rates remaining at historic lows, great opportunity abounds. Whether for a first time homeowner or someone searching for a remortgage deal, the time is right in the housing market.

For the people who want, or need a consistent monthly payment, there are several long term fixed rate deals available, analysts suggest.

On the other hand if someone has the ability to have their mortgage payment fluctuate a bit, then tracker deals or variable rate deals are still plentiful.

One analyst commented: "Anyone on a good long term tracker mortgage with borrowings of 500,000 pounds or more who wants some interest rate security should consider buying a 5-year cap as an alternative to switching to a fixed rate."

"As far as inflation affecting interest rates goes, the report due out today will shed some more light on how far out we are from seeing the interest rates go back up," one local economist commented.

Until then, now is an excellent time to look at a first time purchase or remortgage if it is possible.