Rolling coverage of the latest economic and financial news, as Nationwide reports that UK annual house price growth fell to -3.4%, from -2.7% in AprilWith the Bank of England expected to keep raising interest rates, the housing market will come under more pressure, Nationwide warns.The financial markets currently predict Bank Rate could be near 5.5% by the end of this year, up from 4.5% today, due to the UK’s persistently high inflation.“Headwinds to the housing market look set to strengthen in the near term.While consumer price inflation did slow in April, it was a much smaller decline than most analysts had expected. As a result, investors’ expectations for the future path of Bank Rate increased noticeably in late May, suggesting it could peak at c5.5%, well above the c4.5% peak that was priced in around late March. Furthermore, rates are also projected to remain higher for longer.“If maintained, this is likely to exert renewed upward pressure on mortgage rates, which had been trending down after spiking in the wake of the mini-Budget in September last year. Continue reading…
Source : theguardian.com
Read more…UK housing market ‘facing strengthening headwinds’ as prices fall again – business live
