Yesterday, we discussed the differing reports in the media this week, some of which state the positive figure of a four percent increase in mortgage lending and others discuss how the mortgage market has reached an eight year low.
The reports are based on the mortgages figures released by the British Bankers’ Association (BBA), which are as they are. Both statements are true but how positively or negatively you interpret them depends on your opinion as these statements reported in the Telegraph this week show:
The BBA’s statistics director, David Dooks said: “The house purchase part of the mortgage market appears to have stabilised, with slightly more approvals coming through, although April’s weak net mortgage lending reflects the lower number of approvals in previous months.
Howard Archer, chief UK and European economist at IHS Global Insight, said: “The very modest rise in mortgage approvals in April reported by the BBA adds to the overall evidence that housing market activity has very likely passed its worst point helped by the substantial fall in house prices from their 2007 peak levels and markedly reduced mortgage rates.
Archer went on to say:
“But it is still very weak compared to long-term norms. Furthermore, the BBA data reinforce our belief that the pick-up in housing market activity will be gradual and fitful for some time to come, given ongoing very poor economic fundamentals and still tight credit conditions.”
Obviously, your opinion may depend on your own circumstance and view of the market but looking at reports on how competition from mortgage lenders is increasing and the frequency of these reports indicates that the market may be improving albeit a slow progress.