UK June Halifax house prices -0.1% vs 0.0% m/m prior

<ul><li>Prior 0.0%; revised to -0.2%</li><li>House prices -2.6% y/y</li><li>Prior -1.0%; revised to -1.1%</li></ul><p>This marks a third consecutive monthly decline for US house prices, with the typical UK property now costing £285,932 as compared to the peak in August last year at £293,992. Halifax notes that:</p><p>“These latest figures do suggest a degree of stability in the face of economic uncertainty, and the volume of
mortgage applications held up well throughout June, particularly from first-time buyers. That said the housing
market remains sensitive to volatility in borrowing costs. Concerns about persistent inflation have led to a
significant increase in the cost of funding. Coupled with base rate rising by another 50bp, this contributed to a
big jump in typical mortgage rates over the last month.
</p><p>“The resulting squeeze on affordability will inevitably act as a brake on demand, as buyers consider what they
can realistically afford to offer. While there’s always a lag effect when rates go up, many existing mortgage
holders with variable deals or rolling off fixed rates will likely face an increase in the next year."</p>

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