New mortgage approvals have dropped to the lowest monetary value we have seen in over two and a half years. Given that only 42,088 new loans were approved last month this is the worst since records began in 1997.
The worrying thing is that even though property prices were about 5% across 2007 the prices actually fell in the last quarter.
I suspect rates need to come down by two more quarter point increments if we want to see this start to change ion any sustained way and I'll be interested to see business borrowing figures next month to see how it is biting into the supply chain.
My bet is for a February or March .25% cut and then another in June or July, watch this space.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment