House prices on the slide despite lowest-ever mortgage rates – The Times (subscription)

The mortgage rates are way down right now but it isn’t affecting the housing prices the way you’d think it would. Usually the housing market booms when rates are down because more people want mortgages once they realize the payments are lower. They go get loans because they know they can actually afford them and that means many more houses are sold at these times. This isn’t what’s happening now, though, which is quite surprising.

Key Takeaways:

  • House prices are rises slowly, which might suggest that the buyer market is weak.
  • Not only are house prices rising slowly, lending rates are on the decrease.
  • It’s surprising to even economists that the housing market is booming, because unemployment is low as well.

““While monthly figures can be volatile, the recent softening in price growth may be a further indication that households are starting to react to the emerging squeeze on real incomes or to affordability pressures in key parts of the country,” he said.”

Read more: https://www.thetimes.co.uk/article/house-prices-on-the-slide-despite-lowest-ever-mortgage-rates-50c7f8b2j

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