Current public sentiment towards the housing market?

Status
Not open for further replies.
From the article:

Now economists are predicting there could even be two more rates rises before the end of the year. Nick Matthews, an economist at Barclays Capital in London, said he expected the ECB to raise its rate to 3.25pc.
"We're looking at two more rate increases by the end of the year," he added.
Another rates rise in December, in addition to today's, will see the average home buyer around the country paying some €500 a month more in mortgage payments than last year.

The average homebuyer? Is that 300,000 mortgages? 500 extra a month is serious money!!! 2 more interest rate rises due this year also.........God help anyone on Mortgages of 400k and upwards - they HAVE to be feeling a huge pinch now, next year could be a very dreary year for many.
 
SHARP said:
From the article:

Now economists are predicting there could even be two more rates rises before the end of the year. Nick Matthews, an economist at Barclays Capital in London, said he expected the ECB to raise its rate to 3.25pc.
"We're looking at two more rate increases by the end of the year," he added.
Click to expand...

It will be interesting to listen to the commentary by Mr Trichet this afternoon. If he quotes the phrase "strong vigilance" then we can expect a rate rise in November, possibly followed by another in December. He could however not do that and just point to inflationary fears thus paving the way for just a December rate rise.
 
Bedsit said:
It will be interesting to listen to the commentary by Mr Trichet this afternoon. If he quotes the phrase "strong vigilance" then we can expect a rate rise in November, possibly followed by another in December. He could however not do that and just point to inflationary fears thus paving the way for just a December rate rise.
Click to expand...

Let hope he stamps on this cr8p we've been hearing in the media about there being no rate rises in '07.
 
We have been living in interest rate nirvana in recent years - alltime historic lows.
My wife and I relived our own FTB experience in the early 90's - 9% interest rate, income taxes 20% higher than today, relatively lower salaries. Yes house prices were significantly cheaper though they felt similarly out of reach.
 
Just a quick note a friend mine who looks after House insurance in an Estate Agency in D15. His business is down 60% the last 2 weeks.
 
FLASH: Trichet says strong credit growth pose medium term inflation risks
 
Trichet: Falling oil will spur growth, every line and he is talking up inflation.
 
Trichet: I will not contradict expectation of hike by year end

= definate hike in December
 
Trichet will not comment on 2007 rate outlook, ECB will act accordingly
 
http://www.ecb.int/press/pressconf/2006/html/is061005.en.html

To sum up, annual inflation rates are projected to remain elevated in 2006 and 2007, with risks to this outlook remaining clearly on the upside. Given the ongoing dynamism of monetary and credit growth in an environment of already ample liquidity, a cross-check of the outcome of the economic analysis with that of the monetary analysis supports the assessment that upside risks to price stability prevail over the medium term. It is essential that inflation expectations remain firmly anchored at levels consistent with price stability. If our assumptions and baseline scenario are confirmed, it will remain warranted to further withdraw monetary accommodation. The Governing Council will therefore continue to monitor very closely all developments so as to ensure price stability over the medium and longer term.
Click to expand...
So no rise in November, but looks like another rise in December. When asked to confirm future markets analysis of pricing in a futher 25 basis points Ticket said he would not say anthing to change their view. He wouldn't comment on anything for 2007 either way.
 
Irish Times interesting today, reporting the facts...

"dire week in the auction rooms"

"general acceptance now that the normally short autumn season might be even shorter, as the buyers that are there are sitting on their hands and taking in the view"

"agents have the neck to quote higher prices than initial AMV having withdrawn a property without a single bid. This type of dilusional behavous is unlikely to attract buyers..."

Not much bullish sentiment from the IT anymore i'm afraid
 
Here's a question, do banks have to raise the rates on existing mortgages once the ECB increases the base rate? Or do they just do it because they can?

For example, say I get a mortgage at 4%, and that the bank borrowed that money at the interbank rate of 3% (before todays hike). Is the money the bank took the loan of not fixed at 3% for the term of the loan? Or do the banks who loaned the money to the Irish bank also raise their rates?

Or does it work some other way?
 
soma said:
Unusually clear commentary from Trichet I would have thought.
Click to expand...

Agreed (from the bits I heard). Did he mention "strong vigilance"? I got quite of lot of streaming interruptions while watching online so missed portions of his speech.
 
fmoran said:
Just a quick note a friend mine who looks after House insurance in an Estate Agency in D15. His business is down 60% the last 2 weeks.
Click to expand...

An example of the domino effect upon employment (and the tax take etc.) that many expect, once the construction/housing sector grinds to a halt.
 
Status
Not open for further replies.
Back
Top