Further Interest Rate Rises Ahead?
Winchester estate agents, home-owners and would-be residents are all turning their attention to the meeting of the Bank of England's MPC this Thursday (5 July 2007).
Recent interest rate rises from the Bank have put up the cost of borrowing for many home-owners, with house prices in Winchester seemingly growing at a slower rate than was the case this time last year.
Many analysts are predicting a further rise in interest rates this Thursday. The current rate stands at 5.5%, with most expecting a rise to 5.75%, though 6% is not out of the question.
Conflicting evidence on the speed of any house price slowdown is making the situation difficult to read, although recent comments from the Governor of the Bank of England, Mervyn King, point to concerns about levels of consumer debt and inflation.
Some believe that the housing market may be about to reach a "tipping point" and that buy-to-let investors may seek to sell their properties if interest rates continue to rise.
Filed: 3 July 2007
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