Bank of England: Mortgage Approvals Fall Back in August
Mortgage approvals appear to fall back in August according to the latest data from the Bank of England.
Mortgage Approvals Down 37% Year-on-Year in AugustThere were 45,354 mortgage approvals for house purchase in August 2023, according to the latest data from the Bank of England. This is down 37% year-on-year, and 8% below the previous month. August’s reading was also 31% below the ten-year average.
These latest data continue to show falling mortgage demand, particularly in the wake of the last base rate hike at the end of June. The market implied path for base rate was also translating into higher mortgage rates over recent months.
However, with inflation falling, markets have been forecasting a lower than previously expected peak in base rate. As a result, mortgage rates have also started to recede. At the least, this could stabilise mortgage approvals over the coming months, or even result in a modest rebound in demand.
Mortgage approvals for house purchase to individuals (seasonally adjusted), United Kingdom
Disclaimer: CBRE's Residential Rapid Response provides timely analysis and commentary of the latest residential market data releases.
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