Thursday, Jan 11, 2007
Rate rise likely to hit housing market
Guardian: Rate rise likely to hit housing market
David Bexon, head of SmartNewHomes.com, called the Bank's decision "dangerous".
Presumably just as dangerous as the unnecessary, market ramping comments he's so fond of peddling....
Posted by rod, jand & freddy @ 05:52 PM (157 views) Add Comment
4 Comments
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1. sovietuk said...
"[This] could prove detrimental for the housing market and could sabotage a buoyant start to the year. The many first time buyers who have stretched themselves over the last year to take their first steps onto the housing ladder could be severely affected and this decision could deter many future young buyers from entering the property market."
Yes and if monetary policy had been a bit tighter in the first place then HPI would not have been so high and people would'nt have had to overstretch themselves. Tough Titty.
2. C'mon Correction said...
"[This] could prove detrimental for the housing market and could sabotage a buoyant start to the year. The many first time buyers who have stretched themselves over the last year to take their first steps onto the housing ladder could be severely affected and this decision could deter many future young buyers from entering the property market."
I did my homework, and haven't bought. I will take on the biggest debt of your life when it is safer to do so.
My heart bleeds for the poor estate agents and banks and their "sabotaged housing market".
3. geed said...
"We expected the market to slow naturally in 2007 but a more abrupt adjustment is now more likely," said Warren Bright, chief executive of propertyfinder.com."
Jolly Good.
4. monty said...
I don't think the pips are going to squeek for some time. Think about it. 70% of mortgages are fixed rate and are infinitely more popular than they were in 1990. So even FTBers who "stretched themselves over the last year" are going to cruise through until 2008, at the very least. What it will affect is affordability, both of trading up and FTB. That, in itself, will have a dampening effect on the market but don't expect any panic selling, rather a decrease in volumes (and even prices perhaps) as folk put the brakes on trading up until a clearer picture develops.
I think the BoE will follow the Fed in doing a series of month on month 0.25% increases rather than the 1% jumps every quarter like the last time.