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Mortgage Approvals Rise In April

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http://uk.finance.yahoo.com/news/mortgage-approvals-rise-in-april-reuters_molt-469575749995.html?x=0

Mortgage approvals rise in April

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Topics:Currencies

9:43, Wednesday 2 June 2010

LONDON (Reuters) - Mortgage approvals rose slightly more than expected in April, but unsecured lending fell for the first time since November, official data showed on Wednesday.

Separate figures from the Bank of England showed its preferred money supply gauge -- M4 excluding intermediate other financial corporations -- slowed sharply in April to 0.3 percent on the month.

The BoE said mortgage approvals numbered 49,871 in April, up from 49,008 in March and the highest since December. That was slightly above analysts' forecasts for a reading of 49,250, and suggests housing market activity may be starting to pick up again after a slowdown at the start of this year.

Net mortgage lending, however, rose by less than expected, up 490 million pounds in April from 168 million in March and below forecasts for a rise of 700 million pounds.

And unsecured lending to consumers fell by 136 million pounds, confounding forecasts for a rise of 300 million pounds and the first net repayment of credit since November 2009.

Headline M4 money supply growth was flat on the month in April, leaving the annual growth rate at 3.3 percent -- the weakest since September 1999.

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Jan/Feb/Mar - it was the snow

APR - It's the run up to the election

May - It will be the election again

June - Poor debtors-would-be scared of bad George Osborne's budget and the world cup

July - It was the budget and the world cup

August - People are on Holiday

Sept - The tories have brought a double dip recession

Oct - It's the Rain

Nov - normal low seasonal activity

Dec - nobody buys before Christmas

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Seems like the number of mortgages approved is almost meaningless without knowing the value. The banks could be approving 200,000 mortgages each month, but if each was for the grand total of £1000... Approvals rising is not a bullish statistic on its own.

Edit: plus year-on-year is what really counts.

Edited by Dorkins

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http://uk.finance.yahoo.com/news/mortgage-approvals-rise-in-april-reuters_molt-469575749995.html?x=0

Mortgage approvals rise in April

Buzz up! 0

Print

Topics:Currencies

9:43, Wednesday 2 June 2010

LONDON (Reuters) - Mortgage approvals rose slightly more than expected in April, but unsecured lending fell for the first time since November, official data showed on Wednesday.

Separate figures from the Bank of England showed its preferred money supply gauge -- M4 excluding intermediate other financial corporations -- slowed sharply in April to 0.3 percent on the month.

The BoE said mortgage approvals numbered 49,871 in April, up from 49,008 in March and the highest since December. That was slightly above analysts' forecasts for a reading of 49,250, and suggests housing market activity may be starting to pick up again after a slowdown at the start of this year.

My dear RealistBear, yet again the country faces a rise in mortgage lending, to a figure well below the pre- crisis norm and only a trifling few hundred more than before in a month expected to show the biggest rise of the year. Whatever will we do?..............I know. Concentrate on the money supply M4 - it's is a startling number; falling to the weakest for 11 years. Things ain't what they used to be.

Headline M4 money supply growth was flat on the month in April, leaving the annual growth rate at 3.3 percent -- the weakest since September 1999.

Edited by plummet expert

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Hmm 871 more mortgages in April than march. That's some spring bounce we are seeing!

Edited by Pent Up FTBer

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Hmm 871 more mortgages in march than April. That's some spring bounce we are seeing!

A better headline:

Mortgage Approvals rise alarmingly small

No evidence of a Spring Bounce

BUZZ OF

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Is someone really trying to claim there's anything at all to such a small number? I'd need a bit of convincing that such a number isn't merely noise on a stationary figure.

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Jan/Feb/Mar - it was the snow

APR - It's the run up to the election

May - It will be the election again

June - Poor debtors-would-be scared of bad George Osborne's budget and the world cup

July - It was the budget and the world cup

August - People are on Holiday

Sept - The tories have brought a double dip recession

Oct - It's the Rain

Nov - normal low seasonal activity

Dec - nobody buys before Christmas

don't forget this year we've had Easter and several bank holidays!

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Is someone really trying to claim there's anything at all to such a small number? I'd need a bit of convincing that such a number isn't merely noise on a stationary figure.

Yep that would have been a hefty drop if seasonally adjusted. I'm looking forward to winter if no one wants to buy now :D

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don't forget this year we've had Easter and several bank holidays!

We've been having weekdays this year too, you just can't get the time 'til the weekend to go looking at places properly. I've also heard there's been a spate of people having to buy food, pay bills and breath, surely everyone on this site should be taking out 70 mortgages each to help the country!

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Yep that would have been a hefty drop if seasonally adjusted. I'm looking forward to winter if no one wants to buy now :D

Upon further inspection it appears these figures are SA. The non SA actually showed a fall. (mortgage approvals normally fall from

march to April?)

.......................Non SA......SA

31 Mar 10.......57945......49008

30 Apr 10....... 53650..... 49871

full data set:

http://www.bankofengland.co.uk/mfsd/iadb/fromshowcolumns.asp?Travel=NIxSTxTAxSUx&FromSeries=1&ToSeries=50&DAT=RNG&FD=1&FM=Jan&FY=1963&TD=2&TM=Jun&TY=2010&VFD=Y&html.x=16&html.y=18&CSVF=TT&C=10Z&C=112&Filter=N

Edited by Pent Up FTBer

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Upon further inspection it appears these figures are SA. The non SA actually showed a fall. (mortgage approvals normally fall from

march to April?)

.......................Non SA......SA

31 Mar 10.......57945......49008

30 Apr 10....... 53650..... 49871

full data set:

http://www.bankofengland.co.uk/mfsd/iadb/fromshowcolumns.asp?Travel=NIxSTxTAxSUx&FromSeries=1&ToSeries=50&DAT=RNG&FD=1&FM=Jan&FY=1963&TD=2&TM=Jun&TY=2010&VFD=Y&html.x=16&html.y=18&CSVF=TT&C=10Z&C=112&Filter=N

SA?

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Wow, I'd expect more mortgages to be approved in April than March, so why is the Seasonal adjustment implying the opposite?

Also, were last months figures revised? I've noticed on some other scales they adjust the previous months figures down so this months number is greater when infact it's lower, eg ...

March published = 50000

March Revised in April publication = 45000

April Figure in April publication = 49500

This leads to the lovely headline "Mortgage approvals up 10%" of if you're reading the daily express, there is a front page spread with an EA and Stuart Laws from Assetz saying how the market is booming and this shows prices will rise 10% a year etc.

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  • 259 Brexit, House prices and Summer 2020

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      • down 5% +
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