Weak housing data dents the Pound
Locally yesterday we saw 10% wiped off the price of homes, as house prices continue to plummet at their fastest rate for almost 2 decades.
The Nationwide survey found that more than 10% has been wiped off the price of homes since the start of the year, which has seen the steepest decline since 1990. The figures suggest that the credit crunch is still biting hard, with the number of mortgage applications tumbling while inflation sends household spending soaring.
The average property across the country is worth £164,000; £19,000 lower than a year ago. The housing market in the UK is showing little sign of stabilisation and the impact of the broader economy is expected to remain heavy as a result. The market paralysis has been dubbed 'Brick or Mortis'
On the back of BOE member Blanchflower's comments we saw cable through 1.83 yesterday. The Bank of England's dove commented that we need to see a substantial fall in interest rates and probably quickly.
With more from Blanchflower 'The question is what's going to happen to prices 18months down the road' His answer being that inflation is going to 'plummet like a rock' in the medium term.
Blanchflower also expects unemployment growth to accelerate and could hit 2 million by Christmas. Is the UK in recession, will we see an increase of large rate cuts to stop the economy heading into a deep and prolonged slump?
With US Q2 GDP continuing the recent trend of firming data out of the US, growth improved year on year by 3.3% during the quarter, well above the 1.9% initial expectation. With a big contribution seen from net exports and less of a drag from inventories. However, the figures in no way suggest the US economy has turned a corner yet.
Interest rate decisions in the upcoming weeks, in Europe in partiular, will likely confirm that other central banks will now seek a more accommodative policy as growth slows, pushing yields further in favour of the US.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
The Nationwide survey found that more than 10% has been wiped off the price of homes since the start of the year, which has seen the steepest decline since 1990. The figures suggest that the credit crunch is still biting hard, with the number of mortgage applications tumbling while inflation sends household spending soaring.
The average property across the country is worth £164,000; £19,000 lower than a year ago. The housing market in the UK is showing little sign of stabilisation and the impact of the broader economy is expected to remain heavy as a result. The market paralysis has been dubbed 'Brick or Mortis'
On the back of BOE member Blanchflower's comments we saw cable through 1.83 yesterday. The Bank of England's dove commented that we need to see a substantial fall in interest rates and probably quickly.
With more from Blanchflower 'The question is what's going to happen to prices 18months down the road' His answer being that inflation is going to 'plummet like a rock' in the medium term.
Blanchflower also expects unemployment growth to accelerate and could hit 2 million by Christmas. Is the UK in recession, will we see an increase of large rate cuts to stop the economy heading into a deep and prolonged slump?
With US Q2 GDP continuing the recent trend of firming data out of the US, growth improved year on year by 3.3% during the quarter, well above the 1.9% initial expectation. With a big contribution seen from net exports and less of a drag from inventories. However, the figures in no way suggest the US economy has turned a corner yet.
Interest rate decisions in the upcoming weeks, in Europe in partiular, will likely confirm that other central banks will now seek a more accommodative policy as growth slows, pushing yields further in favour of the US.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
Labels: credit crunch, debt consolidation, house price falls, UK recession, Weak Sterling, wise money
posted by Wise Money @ 8:57 AM
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