Bank of England Reports 17-Month High in UK Mortgage Approvals
In a recent update from the Bank of England, it's revealed that UK mortgage approvals surged to a 17-month peak in February, surpassing expectations. The data underscores the impact of declining borrowing costs since mid-last year.
Net mortgage approvals for home purchases climbed to 60,400 in February, up from 56,100 in January, according to the central bank's announcement on Tuesday. This figure exceeded economists' forecasts of 56,500, as per a Reuters poll, marking the highest level since September 2022.
Furthermore, the effective interest rate on newly issued mortgages dropped by 0.29 percentage points to 4.9 per cent in February, the lowest recorded rate since August 2023.
Despite a slight unexpected dip of 0.2 per cent in house prices month-on-month in March, as reported by lender Nationwide, the annual rate of increase reached 1.6 per cent compared to March last year, marking the swiftest annual growth since December 2022. London retained its status as the most expensive part of the UK.
Mortgage approvals and housing price movements are closely monitored by policymakers as they serve as vital indicators for the property market's health, influencing broader economic dynamics and monetary policy decisions.
The recent data indicates that the housing market recovery is ongoing, propelled by the decline in mortgage rates from their peak in summer 2023. Although some fixed mortgage rates have slightly ris