Friday, Jan 12, 2007
Benefits of IR rise
Stock Exchange: Rate rise offers some hope
First-time buyers, previously priced out of the housing market, may benefit from the Bank of England's decision to raise interest rates to 5.25 per cent, a market expert predicts.
Posted by bufferbear @ 09:16 PM (166 views) Add Comment
6 Comments
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1. paul said...
Good find, bear.
I find it subtly ironic that while the mainstream media won't touch this story, the powerhouse of the UK economy (lets face it, it is) quietly murmurs the upside and in doing so throws a raft of hope to a whole generation of priced out FTBs.
Credit to the LSE for saying what no-one else wants to say.
2. sirgoogle said...
Well if everybody just holds back enmasse from buying for a month or so now after the IR rise - then the few houses currently on the market will need to lower their prices - and the spiral down will start.
Once it starts - there is no way of predicting how low it will go.
All we need is for a little discipline from the public to stay away from the Estate Agents for a couple of months.
3. converted lurker said...
Paul, just to let you know how this works, a company called adfero in effect write articles for the LSE and provide a feed for them to pick and choose from. They've picked up on Firstrung's press release, the one what I wrote ;¬) and used it.
Credit the LSE for picking correctly IMHO, but they do not create their own work, they rely on mugs like me. Still, if it works eh?
Paul (Firstrung)
4. Nohpc said...
hmm can somebody explain to me how an interest rate rise helps first time buyers? Their monthly repayments will be exactly the same if not more even if they get the property for cheaper.
5. Bubbles. . . . said...
Bring on the rate rises!!!! I spoke to my bank in december opened an cash Isa with them and found they pass the rate rises straight away on these savings accounts.. fantastic!!! so now with another .25 im quids in again... I said to them when rises happen in January and February will these be passed on.. They said HSBC we dont forsee any rises at the moment..How WRONG could they be...As for house prices you have to take the rough with the smooth Mr Charcoal..EA banks have had it all to easy now its pay back time..Prices will now bound to fall with people taking 6-7 times income to buy thinking totally stupidly if we dont now we never will!!! Patience can be rewarded..Fool hardyness gets punished....Oh what a glorious 2007 new year present and throughout the year more rises.....
6. bufferbear said...
Because IR rises exert downward pressure on the market and prices will need to fall.