Mortgage Approvals Rise Again!

31/03/2009

Mortgage approvals for house purchases in Britain rose more than expected in February, according to official figures from the Bank of England.

There were 38,000 approvals in the month, up from 32,000 in January.

The mortgage figures suggest that low interest rates and falling house prices may be encouraging people back into the market.

The rise in mortgage approvals by all lenders is a good short-term indicator of actual lending and suggests this may now pick up.

February's figure was significantly higher than the average of 31,000 for each of the previous six months, and the biggest monthly figure since May last year.

Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors (RICS), said

"The increase in buyer enquiries... is now feeding through into actual transactions,"

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