Average mortgage rates edge up again after brief fall, market data shows

Fixed mortgages rates have risen again after a brief fall, according to figures from a financial information website.

The average two-year homeowner mortgage rate on the market edged back up to 6.8% on Friday from 6.79% yesterday, said.

Five-year fixes have also risen back to 6.32%, up from 6.31% on Thursday.

On Wednesday, it emerged inflation had slowed quicker than expected, giving a glimmer of hope for under-pressure mortgage borrowers.

The Office for National Statistics said the Consumer Prices Index fell to 7.9% last month, down from 8.7% in May.

The Bank of England uses base rate rises as a tool to subdue inflation.

The Bank is still expected to raise interest rates – currently at 5% – at its next meeting on 3 August as it battles to bring inflation back to its 2% goal.

But experts have said the bigger-than-expected fall in inflation could see the Bank’s policymakers opt for a smaller increase of 0.25 percentage points rather than another 0.5 percentage point rise.

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