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July Approval Figures
Approvals for mortgages rose more than anticipated
during the month of July, recently released figures show. The
rise of 97,000 is the largest increase since the July of 2004
and is good news for the relatively stale house market as it signifies
a much-needed upturn.
Most economists expected that the number of approvals would rise
the same amount as the previous month, however the actual rise
was some one thousand more. This could be down, in part at least,
to consumers anticipating the cut in rates that came in August
or simply feeling that a rise was unlikely during the short to
medium term given the recent stability of the base rates.
This unexpected rise in mortgage approvals is a sign of a market
that is still healthy, something which is supported by the house
value of 0.2 percent over the same period. Stability is the key
word being used at the moment, no one expects sharp movements
in either direction for house prices or interest rates as the
MPC (Monetary Policy Committee) aims to balance the need to stimulate
consumer spending with keep house prices stable and inflation
under control.
While further cuts in interest rates do not seem likely in the
short term, people do appear more confident that they will at
least remain stable and will not rise, which is helping the mortgage
market, something that is backed up by these latest figures.
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