Wednesday, May 11, 2011

It’s the Spring Slump.

House purchase mortgage applications plummet 21% in a month

Mortgage applications for house purchase were down an astonishing 20.9% in April, compared with March. Remortgage applications also plummeted, down by 26.7%. Despite the steep monthly falls, figures for house purchase loan applications were back to where they were a year ago, showing that the housing market has really been a case of one step forward, one step back. According to the latest National Mortgage Index compiled by the Mortgage Advice Bureau, which largely operates from estate agency branches, and London brokers Coreco Group, mortgage applications in April were just 0.1% down on April 2010. The average loan size on mortgage applications in April was £124,328 compared to £127,546 in March, a decrease of 2.5%.


Posted by sibley's b'stard child @ 09:29 AM (2748 views)
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20 thoughts on “It’s the Spring Slump.

  • the number cruncher says:

    Of you read the comments, and there are genuine, it looks like capitulation is taking over in the EA mindset

    Reply
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  • mark wadsworth says:

    Yeah! Cliff edge!

    Taffee, TNC, Jack C and all the others have been saying this for a few days and they were right!!

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  • the number cruncher says:

    MW I remember you, and others, have said that the EA’s will finally realise thier only chance of survival will be a House Price Crash to get the market moving again. Once that becomes received wisdom the HPC will be home and dry (except for massive government intervention)

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  • Indeed the comments suggest estate agents are more realistic when they chat among themselves.

    As they mention: 4 bank holidays leaving 18 working weekdays pretty much suggests a 20% drop in mortgage application throughput without any change in consumer attitude or behaviour.

    As bear food goes it sounds better than it tastes.

    Curious web site though: I counted 16 flashing moving adverts on the one web page – it was painful – I will NEVER want to go back.

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  • For this time of the year even 10% would be a big drop. Look at the weather, it’s been perfect lately. lol

    We are edging closer to affordable housing, but wait, if they start to raise interest rates in the future it will exacerpate the

    problem. Interesting times lie ahead, obviously for cash buyers with self control.

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  • mark wadsworth says:

    Re my comment 2, add Doomwatch to the list, he also came up with pretty convincing anecdotal.

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  • sibley's b'stard child says:

    TNC, it’s worth mentioning that they’re not all EAs on there although generally there is an air of realism about the place; certainly, it’s accepted that the practice of over-valuing to secure listings is effecting a slow-death for the EA businesses.

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  • mark wadsworth says:

    The idea that more bank holidays = fewer mortgage applications is clearly complete nonsense.

    Those forms take bl–dy ages to fill in, so it’s exactly the sort of thing you do on your days off work.

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  • Re TNC’s comment at number one – this year has definitely seen a change of sentiment over there. Not all agree though and when someone does come along with a bull’s perspective, it is (sadly) only HPCers that debate with them rather than the other EAs. As soon as someone sharing HPC theories in an aggressive manner comes along, then they will close ranks pretty quickly. We do the same when trolls pop here.

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  • 4. sureseam

    Oh you will, one day. 😉

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  • Just read this. Capitulation definitely well inset now in the EA fraternity. However, with NEW vendors [not the ones whose property has been on for 2 months +] there clock still seems to be stuck in November 2007.

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  • the number cruncher says:

    I have a very nice bottle of red + postage (My brother used to be an importer so have some good stuff in the pantry) that house builds will be less than 120,000 in the next 12 months, obviously I am open to spread as well. Any takers

    UT you are a bit of a Tory apologists, as I am a Labor apologist, Its time to move on from tribalism and see the rot in all parties in our political system. The Tory manifesto was a veritable orchestra on NIMBY ‘Dog Whistling’ and MW’s interpretation is very justifiable.

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  • the number cruncher says:

    Sorry wrong post again – I keep different threads open in different tabs in the browser – many apologies

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  • Hi everybody, this week so far has been good for HPC site. May it last a long time. 20 years would be good.
    What intrigues me is how come we have not heard from SMUGDOG. Where are you smugdog ?

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  • sibley's b'stard child says:

    Yes, agreed House, i’m positively replete from this veritable cornucopia of bear-food. They say it’s possible to have too much of a good thing; oh, I beg to differ.

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  • 14. house

    I think smuggy may have rolled over for a bank managers belly scratch. Who knows, but I’m missing the glorious posts.

    Bring back the bouncing ball smuggy!

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  • @the number cruncher (Wednesday, May 11, 2011 01:54PM) – are you now on that bottle of Red?

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  • the number cruncher says:

    Its a bit early for me! Although I will put aside something special for the weekend if this bear-fest continues.

    Having a drink with a surveyor on Friday night and I will get his office gossip to see if there has been a sea change in the mood.

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  • @the number cruncher – please keep us informed, I sense the mood is changing (you could ply him with the Red and really get the inside info !)

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  • Sorry MW I have to disagree about the bank holidays. Yes it’s ideal time for filling in a mortgage application, but a lot of people were on holiday and possibly out of the country, so therefore in no position to go house-buying.

    The average loan size is interesting though. £124,000 – that’s tiny compared to house prices!

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