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Housing market

It takes about 8 savers to finance 1 borrower, I read once. I guess mortgage providers, or at least the building societies and smaller banks need to keep that saver money and offer a return good enough to discourage swapping around. A few months ago, fixed rates were lower than easy access; sth I can't remember happening before. The reason is pretty obvious though.

One of my savings banks has reduced my easy access ISA rates but none of my other accounts have. Whether to fix or transfer? If the BoE DOES reduce rates this week (and nobody is expecting it), I think savings rates (and possibly mortgage rates) will start to be trimmed. The peak was nice while it lasted though......
 
Ponty said:
A mortgage facility of mine is now 10.5% from May (up from 8.25%). Holy smoke!

www.bbc.co.uk

Why mortgage rates are going up, not down

The cost of a new fixed mortgage has risen in recent days, defying many homeowners' hopes and expectations.
www.bbc.co.uk
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Had a warning of a rate rise last week so had to do some quick loan paperwork to get the April rate on 30th. This wasn't supposed to happen but it appears that the wars have generated a far less stable normal.
 
Ao)
dweezil said:
Had a warning of a rate rise last week so had to do some quick loan paperwork to get the April rate on 30th. This wasn't supposed to happen but it appears that the wars have generated a far less stable normal.
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Oh well, the pensions will do well. Every cloud, and all that.
 
dweezil said:
Had a warning of a rate rise last week so had to do some quick loan paperwork to get the April rate on 30th. This wasn't supposed to happen but it appears that the wars have generated a far less stable normal.
Click to expand...

I sense we’ve moved to a ‘perma crisis’ environment. Good for the oil shares though.
 
paulfromcamden said:
Gold recently gaining ~20% in the space of a few weeks might also be seen as perhaps an indicator all is not well.
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Not meaning to go too off-topic but a pal of mine who is experienced in the financial markets has bought gold recently. With the US Dollar being the global currency and that country having a national debt of $34 trillion there could well be a move to a new international medium of exchange. He certainly hopes so! 😊
 
Clive D said:
Not meaning to go too off-topic but a pal of mine who is experienced in the financial markets has bought gold recently. With the US Dollar being the global currency and that country having a national debt of $34 trillion there could well be a move to a new international medium of exchange. He certainly hopes so! 😊
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Some people have been predicting this for the past 50 years : ) I can't see it but who knows.

FWIW SDRs already provide an alternative to USD when when there is a shortage of currency for foreign reserves.

Special drawing rights - Wikipedia

en.wikipedia.org en.wikipedia.org
 
paulfromcamden said:
Gold recently gaining ~20% in the space of a few weeks might also be seen as perhaps an indicator all is not well.
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Yep. I keep exposure to gold as a hedge. General wisdom being, for the sake of everything else, to hope it doesn’t go up too much! It’s interesting how gold, as a non yielding asset, is increasing whilst IR expectations are being re calibrated.
 
Ponty said:
A flat. In fairness, it’s fully offset so doesn‘t cost anything, but it’s indicative of potential trouble ahead. Rates aren’t going to fall as some hope IMHO.
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Here in the UK, yes but in Euroland and the US the options look brighter
 
Kirk said:
Here in the UK, yes but in Euroland and the US the options look brighter
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We’ll see. US debt levels and currency expansion are off the chart, gold rising, as touched on above. Trillions of reasons for the wheels to come off!
 
Take5 said:
Interesting stuff.
so……good time to be a buyer or seller ?
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Depends on so many factors. Would I sell my primary residence, even if I thought the value might drop 30%? No chance. However, I might consider selling investment property at the right price with a reduced CGT rate and lock into a 5% return for no risk, work and agro. Would I buy more investment property. No, unless very cheap from a distressed sale. Would I buy a primary residence if I didn’t have one? Probably. The sooner you start a mortgage, the sooner you live rent free.
 
IanW said:
An alternative view from Gary's economics as to why the rich will keep getting richer as they buy assets from everyone else, house prices and the stock market will rise and interest rates will go down:


And as a consequence this shift in wealth will continue to make the poor and then middle class poorer as the service economy is reduced as money is spent on assets. Pretty scary really. He does end with saying what people have been saying for years and years; the way out of this is to tax the rich more to redistribute the wealth and enable more public spending (MMT not considered or ignored for the purposes of getting the message out there).
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Scary indeed... Something I am not completely convinced of: why would the COVID aid benefit the richest first and foremost as he says?
 
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