Bank of England: Mortgage Approvals Fall Further in September
Mortgage approvals appear to fall further in September according to the latest data from the Bank of England.
Mortgage Approvals Down 32% Year-on-Year in SeptemberThere were 43,328 mortgage approvals for house purchase in September 2023, according to the latest data from the Bank of England. This is down 32% year-on-year, and 5% below the previous month. September’s reading was also 34% below the ten-year average.
These latest data continue to show subdued mortgage demand. In September, the Bank of England voted by a margin of 5-4 to pause and hold the base rate at 5.25%.
It is possible we have reached the peak in rates, but any surprise in inflation could lead to a further hike. As such, our house view has pencilled in one further 25bp rise with rates peaking at 5.5% in Q4 2023.This would continue to impact mortgage affordability and result in muted buyer demand in the coming months.
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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