Average five-year mortgage rate hits 6% for first time in three years

Average five-year mortgage rate hits 6% for first time in three years The average five-year fixed mortgage rate has climbed to 6%, marking the first time it has reached that level in three years, according to latest figures. The cost of home loans has been rising in recent weeks as lenders confront higher funding costs amid global interest rate pressures, rising inflation, and increased government borrowing expenses. This shift means that homebuyers and those renewing a fixed-rate mortgage have seen roughly 1,500 deals priced below 5% disappear since the start of September, data from Moneyfacts shows. Moneyfacts described the situation as "brutal" for borrowers, noting that the average rate on five-year fixed products now stands at 6%, while two-year fixed mortgages average 5.98%. For borrowers, the rate on a fixed mortgage remains unchanged until the term ends—typically after two or five years—when a new deal is selected. The vast majority of homeowners and buyers hold this type of mortgage. Since the Iran warfare began, global economic uncertainty has continued to push up the cost of mortgage products.