Blog Post

Swap rates trend lowers after improvement in June inflation data

TomS - Head Tom Simper Jul 21, 2023, 13:00 PM

Swap rates give us a good indication of changes to come in mortgage costs – reflecting the cost of borrowing for lenders.

The 5-year swap rates had settled to around 4% for much of the first half of the year but from May it trended upward (peaking at 5.5%) over concerns about core inflation.

Data released on July 19th brought some relief to this upward trend. June inflation data was better than expected. Headline inflation was 7.3% and core inflation 6.4%.

This better news on inflation filtered through into lower interest rates on 5-year swaps, dipping back below 5%.

Data could be volatile over the next few months, but this is a good initial indication that inflation is starting to come down. Source: #Dataloft, Investing.com

Leave a comment
Newest on top Oldest on top
Load more comments
Thank you for the comment! Your comment must be approved first
comment-avatar

"We are both so happy with the agents"

- Megan

"The attention to detail and commitment to customer service is remarkable."

- Asad

"Sean is lovely every time he comes round to do an inspection on the house, really polite"

- Charlotte

"It has always been prompt action on any issue raised and the feedback has been positive."

- Oketokun

"Gill and Abbey were quick and efficient to get my place sorted"

- Charlene

"Positives: Quick sale"

- Andy

"Both very Knowledgeable about the all properties I was inquiring about"

- Joanne

"I would have no hesitation on recomending Gill and her team to manage a property or portfolio, in fact I think anyone would be mad to go anywhere else!"

- Barry