House prices add another dimension of concern for the pound
Good morning readers,
This morning Nationwide released their figures showing house prices have fallen by 0.8%. This report from the UK’s largest mortgage approver does not normally result in much movement on the markets however the report that followed has caused sterling weakness this morning as concerns increase.
The report went on to say that if prices continue to fall the overall figures for the housing market this year could come out with negative growth. The housing market is key to the UK and just shows how little is being approved by the banks. Another report showed that the average deposit needed for a house now stands at £37,000 or 2 times the average yearly wage. These high statistics show another dimension that all may not be as happy in the banking sector as they have been telling us and have introduced another dimension on sterling forecast going forward. Unfortunately for people selling the pound it has been negative and has pushed the pound euro rate back close to a seven month low.
Next week we have another key week with consumer confidence and interest rate decisions. Clients looking at making a transfer that are risk averse may like to move sooner rather than later.