UK mortgage rates stabilise for first time since May; Rising interest rates knock £2.1tn off household wealth – as it happened

The Canary Wharf business district in London. Photograph: Bloomberg/Getty Images

3.09pm BST

Afternoon summary

Time for a recap:

UK fixed mortgage rates have stabilised today, after many weeks of steady rises. Both two-year and five-year mortgage rates were unchanged today, for the first time since late May.

Surging interest rates have driven the biggest fall in British households’ aggregate wealth in the postwar era, according to a report which shows aggregate wealth of British households has dropped by £2.1tn in cash terms.

But, the Resolution Foundation also reported that younger people could be net winners from higher rates, as it will lower house prices and make it easier to build up a pension.

How are different generations affected by a world of higher rates and lower wealth?

Boomers - largely insulated as their own outright.

Millennials - lots more debt if they're in early years of home ownership.

Zoomers - benefit from lower house prices and pension saving easier. pic.twitter.com/VMemm3pnvR

— Resolution Foundation (@resfoundation) July 17, 2023

And you can read the report we launched today - Peaked Interest? What higher interest rates mean for the size and distribution of UK household wealth by @ianmulheirn @mollybroome_ & @simonpittaway here https://t.co/XXvmZjC1ha
Thanks to partners on this project @finan_fairness

— Resolution Foundation (@resfoundation) July 17, 2023

Russia has formally withdrawn from the deal to export Ukrainian grain across the Black Sea, sparking criticism from the White House. Wheat prices jumped, amid concens that tens of millions of tonnes of food exports could be threatened.

Rishi Sunak has admitted that inflation is not falling as quickly as he would like…

…while US Treasury secretary Janet Yellen has said she does not expect the US to fall into recession.

Here are the rest of today’s main stories:

2.57pm BST

The White House is urging Russia to reverse its decision to end the Black Sea grain deal (see earlier post), warning it will damage food security.

🚩 WHITE HOUSE:

**RUSSIA'S SUSPENSION OF BLACK SEA GRAIN DEAL 'WILL WORSEN FOOD SECURITY', HARM MILLIONS

**URGE RUSSIA TO IMMEDIATELY REVERSE DECISION

— PiQ (@PriapusIQ) July 17, 2023