Mortgage rates have been on the rise since May, but recent figures show that two and five-year fixed mortgage rates have seen their first day-on-day decreases since then. This is good news for those looking to buy a home, as it could mean lower monthly payments and more money saved over the life of the loan.
The data, released by Moneyfacts, shows that two-year fixed mortgage rates have decreased from 2.51% to 2.50%, while five-year fixed mortgage rates have decreased from 2.89% to 2.88%. This is the first time since May that both two and five-year fixed mortgage rates have seen day-on-day decreases.
The news of these decreases comes as a welcome relief for those looking to purchase a home, as it could mean lower monthly payments and more money saved over the life of the loan. It also means that borrowers can lock in a lower rate for a longer period of time, which could be beneficial if interest rates start to increase in the future.
However, it’s important to note that while these decreases are good news, they are still relatively small. The two-year fixed mortgage rate is still 0.25% higher than it was in May, and the five-year fixed mortgage rate is 0.27% higher than it was in May.
It’s also important to remember that mortgage rates can change quickly and unexpectedly, so it’s important to shop around and compare different lenders to get the best deal. It’s also important to consider other factors such as fees and charges when choosing a mortgage, as these can have a big impact on the overall cost of the loan.
Overall, the news of two and five-year fixed mortgage rates showing their first day-on-day decreases since May is good news for those looking to purchase a home. However, it’s important to remember that these decreases are relatively small, and it’s still important to shop around and compare different lenders to get the best deal.