The last month has brought the first concrete evidence that higher interest rates are starting to dent housing market activity, with the number of mortgage approvals falling for the third month in a row in April. (See Chart of the Month.) However, with overall economic activity remaining robust and the upside risks to inflation still the MPC’s key concern, the housing market would have to turn down much more sharply to prevent interest rates from rising further over the coming months.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services