Wednesday, Mar 28, 2007
The tide turns on the reporting of housing market
Daily Express: INTEREST RATES TO GO UP AGAIN
"MILLIONS of households were put on red alert yesterday for another round of crippling rises in home loans." As I've long predicted, once the gloom becomes a bigger seller than the boom, the tabloids will start to sing our song...
Posted by bidin\'matime @ 01:55 PM (190 views) Add Comment
10 Comments
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1. David20040_0 said...
Wasn't it only yesterday how the Express was full of praise for the housing market and how well it is doing and how well they predict it to do.
Why do these stories always suddenly appear just before the Bank of England decides on its next rate move.
With all these scaremongering stories they won't raise interest rates. I predict even a few might call for a cut.
2. David20040_0 said...
"“If rates were increased, this would add £14.84 to the cost of a £100,000 repayment loan, and would bring the total increase from four rises up to almost £60 a month.’’"
Ohhhhhh 14.84 pounds hardly a lot to make any sort of impact even if they are raised.
3. dohousescrashinthewoods said...
Recycling - I have seen thie phrase "MILLIONS of households were put on red alert yesterday" before.
4. Cstanhope707 said...
Guys they actually produced my comment in the Have your say section take a look. I'm Charles!!!
5. Sam said...
let's hope they call for the lynching of that Allsop girl, surely the symbol of the decadent decade we've just had.
so we gonna vote in tony blair 2.0 so we can go through it all over again?
6. inbreda said...
"Another rise would increase the financial misery being endured by millions of families."
What financial misery? Historically low interest rates and lots of equity in everyones properties, and house prices set to triple in the next ten minutes (according to past DE rubbish).
I don't think we should bother discussing DE stories in the future no matter what opinion they are touting on account of the fact that it's always nonsense.
7. Bosscat said...
“The risk is very much on the upside and, if it happens, it will happen by the end of May,” said Fionnula Earley, chief economist at the Nationwide, the biggest building society."
What was that you said in December 2006 Ms Earley ? Interest rates peaked at 5% ? Should be on the way down ? Not changing our tune surely ?
8. bidin'matime said...
But we don’t make the market - the masses do! If the tabloids put out the message that home-owners face misery, then it will dissuade some from buying houses, which must have a slowing effect on the market. If you don’t think that’s of interest, then don’t read it, but this headline was emblazoned in 2 inch high capitals on the front page of the Express, so it would have been seen by many more that those who bought the paper – this alone will have more impact on the market than a dozen or more carefully argued, intellectually stimulating articles in The Economist or similar.
9. bidin'matime said...
Just looked at it again and the printed headline (well half the front page) in fact says "INTEREST RATES TO GO UP AND UP AGAIN". ie don't think that the next rise will be the last...
Must say, I dont usually buy the Express, but having collected a few with front pages saying that prices are going to double by Friday (or whenever), I have looked forward to completing the set with the ones that tell of the coming doom and gloom.
10. p. o. o. r said...
How is the figure of £14.84 calculated?
Calculations - 0.25% increase on 100K = £250 a year extra, which for a low rate tax payer is about £325 a year from Gross or for a high rate tax payer about £415 a year. Given that a typical mortgage is now over £150K, multipy the above by 1.5... Interest rates have gone up 3 times so far, so mutiply by 3, and that will tell you that someone with an average mortgage of about £150K, paying standard rate tax has to earn an additonal £1462 to be where he was before these increases, and for someone on high rate tax this figure is £1867.
So we get another 2 or 3 rises in IR, there is no question that many people will start to feel the pressure.... What happens if IR goes up to 8 or even 10%
How is the figure of £14.84 calculated?