Saturday, Jan 20, 2007
Markets price in interest rates of 5.75% by June 2007
Murdoch's Times: Traders bet on rate rises after strong Christmas sales period
Another Gabriel Rozenberg article which highlights gathering economic clouds. A bunch of so called experts are pricing in 5.75% interest rates by June 2007 because of the strength of Christmas 2006 sales. I'm taking a dim view of so called experts but I feel the mood of the media is swinging towards higher interests rates. How long before reports of repossessions?
Posted by talking rot @ 09:09 PM (155 views) Add Comment
4 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. paul said...
Reports of repossessions? TR, those were available in June LAST year.
2. headmelter said...
"The only dovish piece of news was a further sign that the housing market may be cooling. The British Bankers’ Association said that net mortgage advances had dropped to £5.8 billion in December, from £6.7 billion in November."
I know people have asked this before but how much of this is MEWing and people positioning themselves with a new fixed rate?
Is this information available?
That aside bring on a 0.5% hike in Feb and be done with it.
3. bidin'matime said...
Headmelter - 'net mortgage advances' means new loans less repayments made, so remortgages for the same amounts drop out of the equation.
Whether the net advances are MEWing or purchases doesn’t make a lot of difference - it still means new money flowing into the system. Perhaps MEWing is perhaps worse, because it is more likely to be spent on the new car or a new suite, but maybe it's as likely to be a foreign holiday or even a property abroad, neither of which add to domestic inflation. Not sure anyone has the info about how the money is spent, to work it all out.
4. talking rot said...
Whoops, Paul
You're right of course. I meant to say "How long before reports of repossessions make the mainstream media THIS YEAR."
Thanks
TR