Thursday, April 26, 2007
Please don’t raise them too much..please…
House prices rise by 0.9% in April to £180,314 making interest rate rises a 'done deal' - Nationwide
Commenting on the figures Fionnuala Earley, Nationwide's Chief Economist, said: While a stable economic environment with contained inflation is essential for a well behaved housing market, we would caution against too sharp an interest rate response to current economic data. In our view, the talk of rates climbing to 6% and beyond are overblown and if implemented in the current climate could be damaging to housing market stability. With the market already showing signs of cooling, too sharp a rate hike could undermine market confidence and dry demand up swiftly. But on top of this, they could also lead to widespread payment difficulties which, in an illiquid market, could precipitate price falls."