Market Update

Posted on 27 October 2008 by Drew

1 comment(s)

The Markets suffer yet again, particularly the Far East  :-

Nikkei (-6.4%)  lowest level for 26 years  
South Korea - Kospi (+0.8) following rate cut of 75bps
Hang Seng (-12.7%)  biggest single day fall since 1991
China - Shanghai Composite Index (-6.3%) lowest level since September 2006
Sydney (-1.6%)
Dow Jones (-3.59%)
The FTSE is down 179.18 this morning as most other European Indices on the back on the losses above.
 
The Prime Minister says that the Lloyds TSB / HBoS merger will still go ahead & that it is desired by both organisations to happen.
 
The Centre for Economics and Business Research (Cebr) has predicted that House price falls will have knocked £50,000 off the value of the average home by the end of 2009, despite the expected cuts in the Bank Rate. This would push values back to their 2004 level. They expect the Government's rescue package for banks to start to ease the current mortgage shortage within the next few months. They also predict a 1% cut in the Bank Rate by the Bank Of England before Xmas, with the base rate then falling to 2% by Autumn 2009.
 
On property prices they expect :-
- prices to be broadly flat in 2010 and then rising by around 20% during 2011 and 2012.

With this level of growth, the average home would still cost 3% less in 2012 than it did in 2007. This  is well down on their previous forecast that prices would be 15% higher by 2012 than they were last year. Ben Read of the Cebr said "Confidence in the housing market has been shattered as lack of mortgage availability has left few sellers chasing even fewer buyers, and expectations of falling prices have become embedded."

Categories: Interest rates, House Prices, Mortgages, Mortgage Lenders

Mortgages says:

Getting updates like this are very useful. It's important to know what's going on in the country and what financial issues there are that may affect you.
Posted on 28/10/2008 17:52 by Mortgages

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