Thursday, Nov 09, 2006

'Tipping point' finally reached?

Firstrung: First time buyer website Firstrung.com hails interest rate rise as 'good news' for first time buyers

Always noted for its contrarian stance versus the accepted consensus, first time buyer website www.firstrung.com has welcomed today's news on the quarter of a percent interest rate rise as it may have finally 'called the top' of the rising housing market. Far from believing that a rise in rates makes the situation even more hopeless for FTBs, firstrung believes a buyers' market, that favours FTBs first, may be just around the corner due to the rise in rates...

Posted by converted lurker @ 12:37 PM (423 views)
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4 Comments

1. sold 2 rent 1 said...

No tipping point yet

IMHO the tipping point will be a US recession/slowdown causing the Fed to drop rates.
With UK rates rising the pound will soar and exporters will struggle and unemployment will rise.

There is 6-12 months before we see this happening

Thursday, November 9, 2006 01:04PM Report Comment
 

2. denzil said...

I don't agree this in itself is good news for FTB. Only if prices retreat will the rate rise be good news.
Another .25 rise early next year will probably send a shudder through the property market but as firstrung point out this .25 rise adds little to the monthly repayment. It simply means it costs more today than it did yesterday to buy the same type of property, that's not good news.

Thursday, November 9, 2006 01:07PM Report Comment
 

3. Cstanhope707 said...

Agree with Sold 2 Rent 1, what we are seeing is the last desparate attempts by Crash Gordan the Beeb and his crobies in the BOE, to hold off the inevitable.

However I am amazed at people who seem to think 5% is high, good god we may crash at 6 to 7%.

Thursday, November 9, 2006 01:39PM Report Comment
 

4. tyrellcorporation said...

A .25% rise impacts much more than an increase in monthly repayment on a mortgage as most people seem to have a wallet full of store-cards and credit cards too. Somebody said recently that a 0.25 rise equates to about a 5-10% rise overall for a lot of people... OUCH!

My worry is that if consumer confidence dips they'll just slash rates and we'll be off again...

Friday, November 10, 2006 11:36AM Report Comment
 

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