Average two- and five-year residential fixes held steady for the second day in a row after weeks of rises showing signs the market is pausing ahead of tomorrow’s inflation report, according to data from Moneyfacts.
The average two-year fixed residential mortgage rate is 6.78% this morning, says the research firm, unchanged from Friday.
While the average five-year fixed residential mortgage rate came in at 6.30%, also unchanged from Friday.
Mortgage rates began rising last month, after official data showed that inflation came in at 8.7% for the 12 months to May.
This sparked a round of repricing from lenders as money markets bet that the cost of living would remain high, forcing the Bank of England to continue pushing up interest rates, currently at 5%.
Investors will pay close attention to the June inflation data, which will be released by the Office for National Statistics on Wednesday.
Financial markets are betting that the BoE bank rate will hit 6.5% next March, while JP Morgan forecasts the rate could touch 7% next year.
Moneyfacts adds that the average two-year buy-to-let mortgage rate is 6.93%, the same average rate as the previous working day.
While the average five-year BTL residential mortgage rate lifted by a single basis point to 6.75%.
