The Halifax says higher mortgage costs could put 'significant downward pressure' on the market.
The UK's housing market is showing signs of slowing and rising interest rates are set to exert "significant downward pressure" on prices in the months ahead, the Halifax has said.Prices rose at an annual rate of 9.9% in September, the Halifax said, the slowest rate since January.
And on Friday they rose further still. The rate on a typical two-year fixed rate mortgage hit 6.16%, according to Moneyfacts, the highest for 14 years.deal has also topped 6% this week for the first time in 12 years, with the rate now at 6.07%. Uncertainty over future interest rates after the mini-budget also led lenders to pull more than a thousand mortgage deals from the market.
"Predicting what happens next means making sense of the many variables now at play, and the housing market has consistently defied expectations in recent times," she added.