House loans UP, Cost of Living UP, Interest Rates UP
The Fed OMC meets now - Lord Patel predicted a rate rise of 1/4% a month ago, and expected the UK to follow suit - in the UK the CPI jumped 0.7% on the month and 4.6% (it was 2.8% a year ago today) on the year, a 15 year record, as mortgage interest payments, energy bills, soared. In the markets British government bonds and interest rate futures fell in expectation that the bank will raise interest rates to at least 5.5%.
Despite this, more money was handed out in home loans last month (£24.6Bn.) than in any February since records began, according to the Council of Mortgage Lenders.
CML Director General Michael Coogan says that we still expect gross lending to reach around £360 billion this year. (2006 £345 Bn. 2005 £ 288 Bn. )
Minutes from the Bank of England's March policy meeting will be released tommorrow at 0930 GMT so the tea leave soothsayers can drool over them - save the trouble , read Lord Patel.
4 comments:
The BBC tells me that the average London house price is now £366,302 - but that was this morning so it's probably topping £380,000 by now
Apparently this is all due to...
""Wealthy City financiers, foreign buyers and big income earners are driving the demand in London and with quality stock at an all- time low, there is an exacerbated effect on prices."
and not bankers flooding the market with debt.
No worries then...
The former Governor of the BoE 'fesses up here...
http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=443540
mi scusi, shorter link...
http://tinyurl.com/yta2j7
Ah, the cycle of birth and rebirth. Not only a triple post from stef but a ref to the Daily Mail.
Perchance they read here already. F'rinstance, the topic of this post was to be found in the Daily Mail just two dayslater.
Slightly off topic but nevertheless fun is this from aref-adib. (Google it, I'm a guest here :)
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