Yahoo Finance LIVE: FTSE muted as five-year mortgage rates pass 6%
The FTSE (^FTSE) and European stock markets had a muted session on Tuesday as five-year mortgage rates passed 6% for the first time this year.
London's benchmark index was trading flat by markets close, while the CAC (^FCHI) was 0.2% down in Paris, and the Frankfurt DAX (^GDAXI) was 0.3% lower.
The average mortgage rate for a five-year fixed deal rose to 6.01%, up from 5.97% on Monday, as the cost of living squeeze continues, according to financial data provider Moneyfacts.
It is the highest since 21 November, when mortgage rates had been driven up by the mini-budget chaos.
The average two-year fixed residential mortgage rate jumped to 6.47%, up from 6.42% on Monday.
Read more: Mortgage rates: Average five-year fix goes above 6% for first time this year
It came as bank bosses have been summoned by regulators to address concerns that rates offered to savers are lagging behind surging mortgage costs.
The Financial Conduct Authority (FCA) and bank executives will discuss the pricing of cash savings accounts, and also how lenders communicate what deals they offer to customers.
Housebuilders were in the red during the session after JP Morgan (JPM) lowered its price target on several stocks, while energy stocks rose after tracking higher crude prices, and industrial metal miners fell.
Watch: How does inflation affect interest rates?
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