Mortgage Approvals
Bank of England: Mortgage Approvals Rise in October
Mortgage approvals appear to rise in October according to the latest data from the Bank of England.
Mortgage Approvals up 8% in October Compared to Previous Month
There were 47,383 mortgage approvals for house purchase in October 2023, according to the latest data from the Bank of England. This is down 17% year-on-year, but 8% up from the previous month. October’s reading was 28% below the ten-year average.These latest data show a rebound in mortgage demand in October. This is likely reflective of the Bank of England’s (BoE) decision to hold the base rate at 5.25% in September. The consensus view is that we have now reached the peak of this tightening cycle, with the BoE also leaving the base rate unchanged in its latest November meeting.
This stability means mortgage rates have fallen recently, which is positive for the housing market. While current rates won’t drive a significant increase in demand, there may be a moderate recovery in the coming months. For example, interest rates on new mortgages are now broadly level to June 2023, when approvals totalled approximately 54,000.
This would equate to a 15% increase from the current level, but still around a fifth below the long-run average.
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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