Cool Mortgage Market May Help UK Economy

April showed a little less mortgage approvals than the previous month indicating that despite recent sharp gains, the housing market in the UK may be beginning to stabilize. March showed a sharp jump for mortgage approvals with over 85,000; April came in at just under 65,000, a good sign according to the British Bankers’ Association. The slowing of the mortgage boom may help to ease pressure on the Bank of England, who was considering raising the interest rates for the short term to slow the demand.

Some analysts, however, point to fewer working days in the month of April for the small numbers. If you consider the amount of working days and the number of approvals for April, they seem to be in line with the forecasted numbers and do not really show a slowing trend. April showed a drop in both gross and net lending when compared to March as well. As long as the market continues a slowed ascent, the Bank of England will be able to maintain the current rates, a good idea for the current economy.