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Hopeful FTB

Interest Rates- What Will It Take To Tip The Market?

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I have a couple of questions- How much of an interest rate rise would it take to tip the market?

How finely balanced is the housing market? Seems to me that if it takes a 0.25 cut to allegedly "reignite" the market- what is it going to take to send it into freefall?

And, in relation to this, are interest only mortgages usually linked to this or are they fixed rate for a period of time? (sorry, dont really understand that part of IO mortgages)

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I have a couple of questions- How much of an interest rate rise would it take to tip the market?

How finely balanced is the housing market? Seems to me that if it takes a 0.25 cut to allegedly "reignite" the market- what is it going to take to send it into freefall?

And, in relation to this, are interest only mortgages usually linked to this or are they fixed rate for a period of time? (sorry, dont really understand that part of IO mortgages)

I think the market is on a knief edge.

Look at the huge push from the VIs in the last couple of days - smacks of desperation to me. Even RICs report is reported as house price rises, where infact more agents are saying prices are falling - spin, spin, spinning out of control.

If rates moved up to 4.75% I think that would do it. It's all about sentiment, the the credit junkies don't like expensive debt - and most think debt is getting cheaper (MPC, put a stop to it)!

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I think rates will need to raise to 5% for the spiral to start. Currently RICS and other VI's seem happy to predict 'corner being turned'.

One reason is the effect of the recent 0.25 % drop and general opinion suggests IR's will drop rather than increase.

IMO - BOE should be controling Inflation at 2% - so IR should go up.

BUT the BOE is actually looking out for the economy as a whole (ie: stimulating growth) and therefore IR's would go down ! doh! :angry:

Im a confused :blink: FTB and playing along with the 'wait and see game' of the BOE!

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Im a confused :blink: FTB and playing along with the 'wait and see game' of the BOE!

Thats exactly what the BOE is after, the wait and see game is the fabled historically high peak the government is after.... The question is will people wait and see for ever and will prices stay historically high indeifinatly, (if you need a hint, NO)

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  • 301 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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