Jump to content
House Price Crash Forum
Sign in to follow this  
Realistbear

Massive Increase In U S Imports Prices

Recommended Posts

http://today.reuters.co.uk/Investing/finan...S-UPDATE-10.XML

STOCKS NEWS US-U.S. import prices up 1.6 percent in May

Fri Jun 9, 2006 1:36 PM BST

U.S. stock market report [.N] 0834 EDT 09Jun2006- U.S. import prices up 1.6 percent in May -----------------------------------------------------------------------------

U.S. import prices rose 1.6 percent in May, more than twice expectations, as the cost of petroleum and industrial supplies climbed, the Labor Department said on Friday in a report that may add to inflation concerns.
Wall Street analysts polled by Reuters had forecast a 0.7 percent increase in May import prices after April's 2.1 percent gain.

Sterling just dropped to 1.83 on the news.

U.K. £ =

1 1.8379

Edited by Realistbear

Share this post


Link to post
Share on other sites

IR hikes are building from Asia and will eventually make themselves felt in the US and Europe--if it isn't already happening following the 20th March tightening in Japan:

Korea on a IR hiking frenzy:

http://joongangdaily.joins.com/200606/09/2...0090509052.html

Several banks plan to raise interest rates on mortgages
June 10, 2006 ¤Ñ Borrowers beware.
A day after the Bank of Korea raised the call rate by 0.25 percentage points to 4.25 percent, a number of local banks announced yesterday separate plans to increase mortgage rates as a means to restrain demand for speculative funds.

Share this post


Link to post
Share on other sites

IR hikes are building from Asia and will eventually make themselves felt in the US and Europe--if it isn't already happening following the 20th March tightening in Japan:

Korea on a IR hiking frenzy:

http://joongangdaily.joins.com/200606/09/2...0090509052.html

Several banks plan to raise interest rates on mortgages
June 10, 2006 ¤Ñ Borrowers beware.
A day after the Bank of Korea raised the call rate by 0.25 percentage points to 4.25 percent, a number of local banks announced yesterday separate plans to increase mortgage rates as a means to restrain demand for speculative funds.

If you call a 0.25% increase a hiking frenzy, what kind of a superlative would you reserve for a 0.5% increase?

Share this post


Link to post
Share on other sites

If you call a 0.25% increase a hiking frenzy, what kind of a superlative would you reserve for a 0.5% increase?

LOL!

I agree.

A doubling of interest rates would trouble me.

2 or 3% would be an inconvenience. I may have to reduce what I spend on luxuries and gadgets for a bit.

Less than 2%? Life would continue pretty much as normal.

And HPC enthusiasts salivate over 0.25% or 0.5%..... :lol::lol:

Share this post


Link to post
Share on other sites

LOL!

I agree.

A doubling of interest rates would trouble me.

2 or 3% would be an inconvenience. I may have to reduce what I spend on luxuries and gadgets for a bit.

Less than 2%? Life would continue pretty much as normal.

And HPC enthusiasts salivate over 0.25% or 0.5%..... :lol::lol:

Did you buy recently or a while ago? It's a genuine question.

I take it that those who have stretched themselves more will be more affected by interest rate rises. Although I agree that small rises probably won't do much to effect a fundamental change in the market as a whole.

Share this post


Link to post
Share on other sites

Realistbear, one minute you post to say that interest rates will remain fixed... next minute you post to tell us hikes are on the way!

Share this post


Link to post
Share on other sites

Less than 2%? Life would continue pretty much as normal.

And HPC enthusiasts salivate over 0.25% or 0.5%..... :lol::lol:

The thing that interests me is that a lot of BTL out there is working on miniscule yields and only the prospect of capital appreciation to make the figures add up.

Even relatively small IR rises are going to send the alarm bells ringing for the investor-led part of the housing market, which as we know, has largely replaced FTBers.

Should investor sentiment turn sour, we could see the "I'm in it for the long-term" sentiment reverse and cause the market to crash.

If you're an ordinary homeowner then a few points on IRs might not harm you. If you're a highly geared member of the BTL brigade then that is another story.

That is why I think that relatively small rises in IR will make a considerable impact on the market. :)

Share this post


Link to post
Share on other sites

Have a friend who lives in a half a million pound house. Says he cannot afford the mortgage if rates go over 5%.!

Think we may be shocked at just how maxed out people are .!!

Share this post


Link to post
Share on other sites

Have a friend who lives in a half a million pound house. Says he cannot afford the mortgage if rates go over 5%.!

Think we may be shocked at just how maxed out people are .!!

But... surely he is halfway to being a millionaire... he can afford it... can't he? Reminds me of those 80's heroin ads.

As I have said on here before, it only takes relatively small hikes to screw the average BTL numpty. People go on about 'oh, it will never go to 15% like before' but, FFS, that 15% was on mortgages that are a fraction of those of today.

Edited by tahoma

Share this post


Link to post
Share on other sites

http://today.reuters.co.uk/Investing/finan...S-UPDATE-10.XML

STOCKS NEWS US-U.S. import prices up 1.6 percent in May

Fri Jun 9, 2006 1:36 PM BST

U.S. stock market report [.N] 0834 EDT 09Jun2006- U.S. import prices up 1.6 percent in May -----------------------------------------------------------------------------

U.S. import prices rose 1.6 percent in May, more than twice expectations, as the cost of petroleum and industrial supplies climbed, the Labor Department said on Friday in a report that may add to inflation concerns.
This is DEVASTATING news - so what's that annually about 15% - it looks like the inflation genie is coming out of the bottle. So the US raise interest rates the £ falls and then a couple months down the line "UK import prices up 1.5 % in July - Bank of England to raise rates by .5%"
:ph34r:

Share this post


Link to post
Share on other sites

This is DEVASTATING news - so what's that annually about 15% - it looks like the inflation genie is coming out of the bottle.

Good job UK isnt affected by these imported price rises

Just putting these the right way round so the bulls get the picture....

Share this post


Link to post
Share on other sites

Why was a thread about organizing a protest about BTL and second home owners pricing a generation out of property ownership moved, very promptly, off-topic.

See the off-topic section and see for yourselves. Is it off-topic? Ask the mods to move it back!

Why the hell was it moved in the first place?

Share this post


Link to post
Share on other sites

Did you buy recently or a while ago? It's a genuine question.

I take it that those who have stretched themselves more will be more affected by interest rate rises. Although I agree that small rises probably won't do much to effect a fundamental change in the market as a whole.

And a genuine answer -- yes, I bought "a while ago".

As I've said several times on this forum, this is not a good time to buy if you're going for a 100% mortgage or an I/O mortgage. But if you've got some insulation, you can ride out a reasonable amount of uncertainty.

Have a friend who lives in a half a million pound house. Says he cannot afford the mortgage if rates go over 5%.!

Think we may be shocked at just how maxed out people are .!!

And I think you'll be shocked at how effectively people deal positively with adversity if the alternative is to lose their home and their credit rating.

If your mate has a 'half million pound house' I'm damn sure he can let out a room for a few months to bring in an extra few hundred quid to pay for the mortgage hike.

He might not like it, but he'll like repossession a whole lot less, believe me.

Share this post


Link to post
Share on other sites

I don't see what allof the fuss is about. Our input prices have been over 15% annual for ages, and no one gives a damn:

"In April, output price annual inflation for all manufactured products fell to 2.4 per cent. Input price annual inflation rose from 12.7 per cent in March to 15.7 per cent in April." http://www.statistics.gov.uk/CCI/nugget.as...Rank=2&Rank=448

I must take issue with BF's posts. If it is generally accepted that the 1/4% cut in interest rates in August 05 gave a boost to the property market, I see no reason why a 1/4% increase might not take the wind out of its sails a bit. I also believe that people have overborrowed massively (see the Pent up Respossessions thread), and that many people are in dire straights at the moment. Any interest rate rises will have a negative impact on the housing market and the economy generally.

Share this post


Link to post
Share on other sites

If your mate has a 'half million pound house' I'm damn sure he can let out a room for a few months to bring in an extra few hundred quid to pay for the mortgage hike.

He might not like it, but he'll like repossession a whole lot less, believe me.

True :) But what effect will this have on the BTL brigade when everyone's looking for a lodger :D

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 302 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.