Thursday, Aug 10, 2006

The global economy means UK house prices are not wholly dependent upon interest rate rises.

Indy Online: Robert Barrie: Why we must not read too much into house prices, fascinating though they are to many

There's a correlation, not a causal, relationship between consumer spending and house price inflation. The correlation between house prices and interest rates is likewise dubious. If you want an idea of where UK rates might be going in the coming months, look beyond our own shores, but a rise in rates does not necessarily mean a house price crash.

Posted by talking rot @ 10:48 AM (494 views)
Add Comment
Report Article

6 Comments

1. Delboypass said...

Ok then...so lets put interest rates to 10%..this wont have any affect on the housing market will it???

Also lets remove IO morgages as well....

Of course they have an affect!!! Its called affordability!!

Thursday, August 10, 2006 12:06PM Report Comment
 

2. paul said...

"A good reason for being concerned about a sustained period of house price rises is that they may make subsequent falls more likely."

I'd say that means a rise in rates doesn't necessarily mean a house price crash WON'T happen.

Thursday, August 10, 2006 12:46PM Report Comment
 

3. nick said...

It's still all denial right now I bet they start to talk about property "bargins" when prices start to fall and what a great investment property now is, exept the falls will just keep on comming

Thursday, August 10, 2006 01:36PM Report Comment
 

4. This comment has been removed as it was found to be in breach of our Blog Policies.

 

5. Nick said...

It's still all denial right now I bet they start to talk about property "bargins" when prices start to fall and what a great investment property now is, exept the falls will just keep on comming

Thursday, August 10, 2006 01:37PM Report Comment
 

6. indiablue19 said...

What this character seems to be saying is that you can't use house price levels as a pretext for declaring an economy healthy or unhealthy and we therefore shouldn't "obsess" on house prices as a particular indicator of overall consumer spending or upward and downward trends; partly because if your house price goes up, so will the price on any house you intend to buy. So what have you gained. OK. So what?

He says there are many other factors to be considered in monitoring the health of an economy. Interest rates going up and down might be one of those. Right. Manufacturing output. Yup. Got it. This guy's a barrel of information and probably the hit of any drinks party. Yawn......

Thursday, August 10, 2006 09:50PM Report Comment
 

Add comment

  • If you do not have an admin password leave the password field blank.
  • If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines
Username  
Admin Password
Email Address
Comments

Main Blog | Archive | Add Article | Blog Policies