Average mortgage rate hits two-year high

The average mortgage rate rose by 0.1 percentage point month-on-month to 5.42 percent at the beginning of August. It has increased for the fifth consecutive month, reaching its highest level in two years,Swiss Life Hypoindex reported.

The index reflects the average rate offered for mortgages covering 80 percent of a property's value.

Mortgage rates are influenced mainly by long-term market interest rates and conditions on financial markets, which determine banks' funding costs.