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" August Mortgage Approvals Dip"

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http://uk.finance.yahoo.com/news/august-mortgage-approvals-dip-reuters_molt-4cf14a9d045c.html?x=0

August mortgage approvals dip
Buzz up! 0 Print..9:32, Wednesday 29 September 2010
LONDON (Reuters) - Mortgage approvals for house purchase fell to a seven-month low in August and net consumer credit unexpectedly contracted, official data showed on Wednesday.
The Bank of England said mortgage approvals numbered 47,372 in August, down from 48,346 in July and broadly in line with analysts' forecasts and a weaker industry survey last week.
Consumers unexpectedly made a net repayment of unsecured debt in August. Net consumer credit fell by 120 million pounds, the biggest drop since November 2009.

Worthy of an extra McVities Plain Choccy Biscuit with a cuppa this fine morn!

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Surely some member of the knackerd old bitch of Threadneedle Street should come out bemoaning that the debt junkies who they have just fisted billions of pounds to (off the back of everybody else) to go out and spend rather than using the stolen money to pay off debt?

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http://uk.finance.yahoo.com/news/instant-view-august-mortgage-approvals-dip-reuters_molt-8808a92e5763.html?x=0

ANALYST COMMENTS

VICKY REDWOOD, CAPITAL ECONOMICS

"A fairly disappointing batch of UK data this morning. For a start, the housing market still appears to be weakening, with the number of mortgage approvals for new house purchase falling from 48,300 to 47,400 in August, the fourth monthly drop in a row. And the recent falls in the RICS balance of new buyer enquiries suggests that approvals could drop even further.

"Meanwhile, unsecured borrowing fell by 0.1 billion pounds in August, suggesting that banks still aren't keen to lend and/or consumers don't want to borrow.

"And the monthly index of services showed that services output contracted by 0.2 percent month-on-month in July, heightening the risks of a sharp slowdown in growth in Q3.

"The one bit of good news is a robust 0.8 percent monthly rise in August in the MPC (A050540.KQ - news) 's preferred measure of the broad money supply, so-called M4 ex. But this measure has been jumping around recently and the MPC has warned of possible distortions from seasonal factors. So we doubt it will do anything to change the minds of those MPC members (like Adam Posen) who are moving towards doing more QE."

HETAL MEHTA, DAIWA CAPITAL MARKETS

"It's a mixed bag of data, with mortgage lending picking up, but approvals falling again and net credit back in negative territory. But this does not change the broad picture, that the housing market is in for a period of stagnation for the next 9-12 months.

"Until there is a substantial recovery in credit extended, the outlook for the housing market is rather gloomy.

"While monetary policy in recent years has not been particularly responsive to movements in the housing market, continued weak data long these lines could persuade more MPC members to join with Adam Posen in believing that more quantitative easing is required."

HOWARD ARCHER, IHS GLOBAL INSIGHT

"Housing market data and survey evidence has been consistently downbeat recently and the very weak Bank of England mortgage lending data for August is a prime example. Indeed, the drop in mortgage approvals to a six-month low fuels our suspicion that house prices will fall back by some 10% over the latter months of 2010 and during 2011.

"High unemployment, muted wage growth, low consumer confidence, difficulties in getting a mortgage, a housing supply/demand balance currently firmly in favour of buyers and a house price/earnings ratio above long-term norms comprise an unhappy set of factors for house prices. Low interest rates and the current stamp duty holiday for first-time buyers on all properties costing up to 250,000 pounds only partially offset these adverse factors."

ALAN CLARKE, BNP PARIBAS (Paris: FR0000131104 - news)

"It's small beer. The big picture is that approvals are going sideways at a low level consistent with pretty sluggish activity in the housing market, and not conflicting with other data that suggest the housing market is already in a double dip."

REALISTBEAR, HPC.CO.UK (Brighton: RB007-bearnews)*

"If you think this is bad news just wait."

* <_<

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I see the contraction of consumer credit was "unexpected", so I wonder, was the dip in mortgage approvals also "unexpected"?

I wonder why people have suddenly decided to pay back their debts, instead of just carrying on spending it, like they have been in the past? Could they now be coming nervous about their jobs? Or becoming nervous about the prospect of an increase in interest rates?

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I see the contraction of consumer credit was "unexpected", so I wonder, was the dip in mortgage approvals also "unexpected"?

I wonder why people have suddenly decided to pay back their debts, instead of just carrying on spending it, like they have been in the past? Could they now be coming nervous about their jobs? Or becoming nervous about the prospect of an increase in interest rates?

I don't think worries about IR rises figure in most people's lives - sadly.

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I think the last figures we had were from the BBA, maybe these are the new CML figures?

This is bank of England final mortgage approvals.

There is also:

BoE trends in lending or initial mortgage approvals.

BBA approvals

CML which also has two releases I believe.

Edit: numerous spelling and grammatical errors.

Edited by Pent Up

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http://www.bankofengland.co.uk/statistics/li/2010/aug/lendind.pdf

table A

"Total net lending to individuals rose by £1.5 billion in August (Table A). The twelve-month growth rate increased by 0.1 percentage points to 0.9%. The three-month annualised growth rate remained at 0.6%.

Within the total, net lending secured on dwellings increased by £1.7 billion (Table A), above the July figure of £0.0 billion and the previous six-month average of £0.7 billion. The twelve-month growth rate remained at 1.0%. The three-month annualised growth rate increased to 0.8%, from 0.5% in July. The number of loan approvals for house purchase (47,372) was below the July figure (48,346) and the previous six-month average (48,619). Approvals for remortgaging (28,042) were up on July and also higher than the previous six-month average (26,765), while approvals for other purposes (23,818) fell in August and were also below the previous six-month average of 24,969

Consumer credit showed a net repayment of £0.1 billion in August, below the previous six-month average and the July increase of £0.2 billion (Table A). The annual growth rate of consumer credit remained unchanged at 0.2% and the three-month annualised growth fell to -0.1%. Within consumer credit, credit card lending increased by £0.1 billion, slightly below the previous six-month average. As in recent months, there was a net repayment of other loans and advances (£0.2 billion). "

Edited by zim

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This is bank of England final mortgage approvals.

There is also:

BoE trends in lending or initial mortgage approvals.

BBA apptovals

CML which also has to releases I believe.

no wonder we were finding it confusing.

thanks for the info....

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yep. numbers of approvals are down, yet MEW increased a bit, and unsecured debt fell.

No Wonder Bean the Banker Captain said yesterday we need to get spending....he sees, all that QE failing to work.

Paying down debt to banksters??? whatever next.

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  • 150 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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