- Inflation rises to 3.2% in biggest leap on record but ONS says rise likely to be temporary; stock markets fall as China retail sales and industrial production slow
- UK housing market cools in July
- Countryside leaseholders in victory in ground rent scandal
- John Lewis to recruit 7,000 temporary workers for Christmas
There are several bits of US economic news.
Mortgage applications to buy a home jumped 7% last week from the previous week to the highest level since April, according to the Mortgage Bankers Association. Applications were still 11% lower than the same week a year ago, but it was the smallest annual decline in 14 weeks.
Even with the recent new listings slip, the gap with pre-Covid levels has shrunk significantly as more new sellers have entered the market so far in 2021 than last year.
Both conventional and government purchase applications increased, and the average loan size for a purchase application rose to $396,800. The very competitive purchase market continues to put upward pressure on sales price.
The UK house price data released today showed the second steepest monthly decline in house prices since 1968, of 3.7%, knocking around £10,000 off the value of the average home.
Tom Bill, head of UK residential research at Knight Frank, says:
Like a bad Hollywood blockbuster, the UK housing market looks like it will have a predictable finale this year after an explosive start. Demand remains robust and the economic backdrop increasingly has a feel-good factor as Covid disappears into the rear-view mirror.
The key question is by how much supply picks up as autumn approaches. We expect seasonality and needs-driven buyers to play an important role in driving supply higher, which should start to curb house price growth. The monthly decline in July was the largest since 1992 and the second steepest since 1968 and we therefore expect annual growth to end the year in single digits.
