Thursday, Dec 27, 2007
Collapse in mortgage approvals does not bode well!
Telegraph: Mortgage approvals tumble 44pc
With mortgage approvals tumbling 44% and equity withdrawals falling as well it does not bode well for the UK housing market. The cdedit crunch is deepening every day.
"Mr Archer revealed that he now expects house prices to fall 3pc next year, having previously predicted that prices would flatline at 0pc growth.
He added: "This ongoing evidence that the housing market is currently slowing markedly maintains pressure for another interest rate cut early in 2008."
Posted by doomberger @ 12:31 PM (239 views) Add Comment
2 Comments
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1. planning4acrash said...
Mr Archer (of Global Insight) revealed that he now expects house prices to fall 3pc next year, having previously predicted that prices would flatline at 0pc growth.
How many more times must they re-adjust house inflation (deflation) predictions until they reach 50% fall over 4yrs?!
2. alan said...
If Mr Archer maintains enough pressure on IRs, then when the BoE cuts he can predict (with some certainty this time) that inflation will follow swiftly behind.
Cutting IRs won't keep house prices high, cutting IRs will reduce the exchange rate for the £ and all our imports will cost more. Avoiding a drop of 7% on over-valued house prices could give us 7% inflation!