Average rates for five-year fixed mortgages have crossed the 6% threshold for the first time since 2023, driven by instability in bond markets that has heightened expectations of a base rate increase. Banks and building societies are raising prices as the volatility makes these loans more costly for lenders to provide.
According to data from Moneyfacts, the average five-year fixed rate has reached exactly 6.00%, representing its peak level since September 2023. The two-year fixed rate is approaching similar heights at 5.98%, marking its highest point since December of the same year.
Housing market crash incoming. Good luck to the speculators who thought rates would stay low forever.
Should I lock in now or wait? My financial advisor says the pain is coming, but I am scared to miss out.
Is it just me, or did everyone ignore how volatile the bond market has been all year? This feels inevitable.
We need to talk about what this means for first-time buyers who are already priced out. It is a crisis.