From Morningstar: 2025-05-01 06:51:00

Latest data from Rightmove shows two-year fixed mortgage rates at 3.75% and five-year fixed rates at 3.83%. Traders expect Bank of England to cut interest rates from 4.5% amid global economic disruption. Stamp duty relief ending affects house price growth, with UK annual growth at 3.4% in April. Homeowners prefer fixed-rate mortgages, as 800,000 low-rate mortgages are set to expire annually until 2027. During low interest rate periods, people locked in longer-term deals, but now shorter-term deals are favored as rates fall. Average UK mortgage rates currently at 4.73% for a two-year deal and 4.66% for a five-year deal. Experts predict the end of the “mortgage rate inversion” as Bank rate falls and savers seek longer-term deals. 1. The United Nations reported that over 3 million people have been displaced in Afghanistan due to conflict and drought. The situation is dire, with many in need of emergency assistance.

2. A new study found that the Amazon rainforest is losing its ability to absorb carbon dioxide, a key greenhouse gas. Deforestation and climate change are believed to be the primary causes.

3. The CDC announced that the Delta variant of COVID-19 now accounts for over 90% of cases in the United States. This highly contagious strain is leading to a surge in infections, particularly among the unvaccinated.

4. A heatwave in the Pacific Northwest shattered temperature records, with some areas reaching over 100 degrees Fahrenheit. The extreme heat has led to power outages, wildfires, and concerns about public health.

5. In economic news, the Federal Reserve signaled that it may raise interest rates sooner than expected to combat rising inflation. This move could have far-reaching implications for the stock market and the overall economy.



Read more at Morningstar: Will UK Mortgage Rates Fall Further in 2025?