UK August Halifax house prices -1.9% vs -0.3% m/m expected

<ul><li>Prior -0.3%; revised to -0.4%</li><li>House prices -4.6% y/y</li><li>Prior -2.4%; revised to -2.5%</li></ul><p>The monthly drop in UK house prices is the steepest since last November, with the average home now costing £279,569, down by around £5,000 since July. Halifax notes that:</p><p>“It’s fair to say that house prices have proven more resilient than expected so far this year, despite higher interest rates weighing on buyer demand. However, there is always a lag-effect where rate increases are concerned, and we may now be seeing a greater impact from higher mortgage costs flowing through to house prices. Increased volatility month-to-month is also to be expected when activity levels are lower, though overall the pace of decline remains in line with our outlook for the year as a whole."</p>

This article was written by Justin Low at www.forexlive.com.