Encouraging words from the UK’s Central Bank that could be further proof of the impact of quantitative easing economic policy.
Bank of England
Banks and other lenders were making more mortgages available to their customers in the final quarter of the year and are expected to further boost their offerings in the new year, the Bank of England said today.
In its latest quarterly Credit Conditions Survey, which asks lenders about credit conditions over the past three months, the Bank reported that respondents had said that the situation had become better because of the improved economic outlook and higher house prices.
Times Online
The Standard & Poor’s / Case-Shiller home index – which measures house prices in 20 US cities – indicates that prices remained mostly flat in September, rising only 0.3 percent on a seasonally-adjusted basis. The index had increased in recent months, climbing 3.5 percent since May, giving rise to optimism that the market was rebounding but September’s results have analysts rethinking their position.
“This may be a bit of a transition period,” said Maureen Maitland, vice president for index services at Standard & Poor’s, suggesting that the housing recovery could be more of a “W”-shaped recovery as opposed to a more direct “V”-shape.
New York Times
House prices appear to be finally stabilizing after a disastrous fall in the previous year. The current trend could help the construction industry and overall employment figures if house prices continue to increase.
The Standard & Poor’s/Case-Shiller composite index of home prices in 20 metropolitan areas rose 1.2 percent in August from July, above the estimate of a 0.7 percent rise found in a Reuters poll. The increase, however, was less than the 1.6 percent seen in July, S&P said.
The composite index of prices in 10 metropolitan areas gained 1.3 percent in August after a 1.7 percent rise the previous month.
Reuters
