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2005

Global Turning Point?

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I don't know if this has already been posted as it was in yesterdays Guardian but it would seem to confirm some of the thoughts on this forum about rising interest rates so I thought I would post it anyway. I can't find the link but have reproduced the general gist of the article.

"Government bond yields have risen sharply in the past two weeks, signalling a possible turning point for financial markets and an end to easy credit. US Treasury yields have risen to an 18-month high of 4.8% in recent weeks and UK gilt yields are also higher.

Falling bond prices - which mean their fixed interst payments give a rising yields- could finally be responding to central banks' interest rate rises. This could see the cost of the popular fixed-rate mortgages increase, which in turn has implications for booming house prices."

....."Fixed rate mortgages are almost certain to head higher in the coming weeks, which could suppress house prices once again"

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Slowly, ever so slowly, the wheels of the economic cycle turn. The booms and busts come and go and few see them as they approach so slowly as to be virtually imperceptible. Where are we today? At the end of the boom cycle. Where will we be in 6 months? At the beginning of the bust cycle?

Follow the money. Where is the gilt market going? Are the big investors still buying property?

All things come to those who wait. :)

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  • 335 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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