Today's read
The rates lenders use to price fixed deals edged down on Friday. A typical 2-year fixed deal now works out at 4.59% (−0.05 on the previous day) and a 5-year deal at 4.44%.
On a £200,000 repayment mortgage over 25 years, the 2-year deal works out at about £1,122 a month, £6 a month less than the day before. The 5-year deal is about £1,105 a month.
The Bank of England rate is 3.75%. Markets expect no change at the next decision on 17 September, and see it topping out at about 4.75% around April 2027.
Bigger picture, the typical 2-year deal is up 0.27% over the past week and up 0.39% over the past month.
Generated from market prices, not opinion. "Typical" means someone borrowing 75% of their home's value. What the market expects today is not a prediction and not advice.
See what this means for my mortgage →What moved the market
- 07:22The Guardian puts annual growth at 1.3% over the three months to July, and City AM called the expansion unexpected.
- 08:22KPMG, quoted in the Guardian's live coverage, says the growth figure masks a weaker picture for households.
- 08:22American inflation is expected to hold at 3.4% when it lands at half past one.
- 09:20Berenberg says this morning's growth figure adds to the risk of a rate rise before Christmas, and Deutsche Bank calls the growth story harder to ignore.
- 13:49The reaction is still forming, and Monday's estimate is level with today's rate.
- 15:22Reuters has stocks and bonds both higher after the inflation figures.
- 16:22Reuters reports the Federal Reserve is seen likely to raise rates next week, and the energy agency has cut its oil demand and supply forecasts again.
Plain-language notes from the day's market commentary. Times are UK.
Other days
- Tuesday 15 September 2-yr 4.64% unchanged
- Monday 14 September 2-yr 4.65% ▲ 0.06%
- Thursday 10 September 2-yr 4.64% ▲ 0.18%
- Wednesday 9 September 2-yr 4.46% ▲ 0.09%
- Tuesday 8 September 2-yr 4.37% ▲ 0.01%
- Monday 7 September 2-yr 4.36% ▲ 0.04%