Thursday, Jan 24, 2008
More bad news from the housing market - and it won't be the last
MoneyWeek: Mortgage approvals at record low
In December the number of new mortgage approvals fell to their lowest level since records began. Will the Bank of England respond with a rate cut? And, even if it does, will it make any difference?
Posted by mary @ 02:43 PM (556 views) Add Comment
4 Comments
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1. confused76 said...
"So what next? Our guess is that lenders and retailers will really push for big interest rate cuts at the the next Bank of England meeting; that they’ll get a small one; that it won’t work (you can’t make people borrow money if they don’t want to); that they’ll push for more; and that in about five years house prices will start rising again. That’s how it usually happens anyway."
MWAU UAHHA HAHHAHA HH HAHAHHA HAHAHHAHAHH
2. mark said...
banks simply wont lend the levels they have over recent years, very few will lend more than 3.5 / 4 times salary now... therefore house prices have to come down now
3. jack c said...
I have just spoken to someone who is working in conjunction with a property developer with regard to placing mortgages on a new development and there are only 4 (Four) lenders in the whole of the UK who will consider applicants.
The whole market is becoming more fragile month by month - prices could half at this rate.
4. jack c said...
From Citywire today - 'Markedly reduced housing market activity is now weighing down significantly on house prices, and this seems set to continue for an extended period. Global Insight expects house prices to fall by 3% in 2008 and to remain muted for an extended period beyond 2008.'
Although a big fall is not ruled out.
Meanwhile we're flashing the plastic less than we did.
'The BBA reported that consumer borrowing was relatively muted in December, with credit card repayments outstripping repayments. In addition, credit card transaction numbers were reported to be weaker than average in December.'
Whether that trend defies a cut in interest rate remains to be seen ...