Friday, Sep 08, 2006
Homeowners breathe sigh of relief -- but where to now? - Where indeed....
Reuters: Homeowners breathe sigh of relief -- but where to now?
LONDON (Reuters) - Homeowners breathed a sigh of relief on Thursday after the Bank of England maintained interest rates at 4.75 percent.
Mortgage holders -- first-time buyers, in particular -- are already feeling the pinch of last month's base rate rise and Stuart Law, managing director of property investment firm Assetz, said a further jump would have had a "disastrous effect" on the market.
Posted by crash bunny @ 07:24 PM (155 views) Add Comment
5 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. sirgoogle said...
Why would "Homeowners breathe a sigh of relief"?? The rise if it came would only be .25%. That would not change anything. The additional rise in repayments is pathetic .... or are people really so stupid to have racked up so much debt that this really will push them over the edge ?
2. John_coller said...
The graph of individual insolvencies shows that a large number of people are struggling before the rate rise.
3. Qetesuesi said...
Yes, they are.
4. Cstanhope707 said...
Well put sirgoogle, I am amazed that the industry is so worried that such tiny IR rises would damage everything.
It is a generational thing today people think that such things as recessions and HPC's can not ever happen.
Someone I forgot who made an excellent point about IR's being set low for such a long time as to avoid amjor economic meltdown after 9/11. However we can not avoid it IR rates will go up and up in the near future as money supply will have to be tightened worldwide.
To think that we can keep IR rates low forever is stupid, when the Tories were in power and they had control over the IR setting the rates were going up to 17%, if it was that easy to just make them low then they would have done so.
Trouble is we needed a bad world recession after 9/11 to get it out of the economic cycle and be done with it, we have been putting it off for so long that when the crash comes it is truly in my opinion going to bigger than anything that has happened before apart from the Great Depression of the 1930's well I hope so anyway..
5. Nick said...
I think the 30's recession will be dwaft, this one could be collapse