Average mortgage rates fall for the first time in months

Average mortgage rates have fallen for the first time in months.

Both two and five-year fixed-rate deals have dropped, according to data from financial information company Moneyfacts.

The average rate on a two-year fixed deal is now 6.79%, down from 6.81% on Wednesday, while the average five-year rate dipped to 6.31%, a decrease from 6.33% on the day before.

Rates haven’t fallen since the spring.

A surprise drop in the rate of inflation has led to lower interest rate forecasts.

It’s now expected that the Bank of England will need to do fewer base interest rate hikes to bring inflation to its 2% target.

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