Fewer people are being approved for mortgages. The rate has dropped to a nine month low. This means there aren’t as many homes being bought either. This could affect the housing market. It’s important to keep track of it if you invest in real estate or if you have any other income with will be affected by a change there. The housing market is often tied to the economy so watching it can give you a heads up.
Key Takeaways:
- The 64,864 mortgage approvals by the Bank of England in June 2017 was the lowest number of approvals since September of the previous year.
- The British banking industry has reacted to the changing economic conditions by making unsecured credit more difficult to obtain.
- British consumer demand has been weakened by stagnant wages and increased inflation since the decision to leave the EU.
“While Britain weathered the immediate aftermath of last year’s Brexit vote far better than most economists had forecast, growth so far this year has been the weakest since 2012.”