–BOE: UK Jun House Purchase Approvals 48,421 vs 46,418 May
–BOE: Jun Mortgage Approvals Highest Since May 2010
–BOE: UK Jun Net Mortgage Lending -stg0.069bn vs stg1.012bn May
–BOE: UK Jun Net Mortgage Lending lowest since Dec 2010
–BOE: Jun M4 EX-IOFCs Up 1.6% 4Q/12M Annualised
London (MNI) – Mortgage approvals rose sharply in June to their
highest level since May last year, far exceeding analysts’ expectations,
but net mortgage lending declined, the latest Bank of England personal
lending data showed.
Mortgage approvals rose to 48,421 from 46,418 in May, compared to
analysts’ median forecast for a 46,000 outturn. Mortgage approvals are a
good indicator of future housing market activity but the BOE data showed
that net mortgage lending in June decreased.
Seasonally adjusted net mortgage lending declined stg69 million on
the month in June, having rise 1.012 billion in May, the weakest outturn
since December 2010.
The decline may be in part due to seasonal adjustment, with BOE
officials pointing out the non-seasonally adjusted net mortgage lending
figure for June showed a rise of stg1.8 billion and one of stg2 billion
last June, which was lowered to stg0.8 billion on an adjusted basis.
The BOE data suggested consumers’ appetite for unsecured credit
remains weak, with net consumer credit up stg432 million on the month
compared to stg338 million in May.
Broad money growth remained subdued.
M4 excluding intermediate other financial corporations, which aims
to strip out economically irrelevant intra-financial sector
transactions, showed growth of 1.6% in June on a four quarter/12 month
annualised basis. The one quarter/three month annualised growth was
0.8%.
The raft of data issued by issued by the BOE Wednesday included its
“effective interest rates” release.
This showed mortgage rates nudging down, with the effective rate on
outstanding mortgages falling 2 basis point to 3.45% in June.
–London newsroom: +44 207 862 7491 e-mail: drobinson@marketnews.com
[TOPICS: M$B$$$,M$$BE$,MABDS$,MT$$$$]
