Volcanic Growth Needed in Mortgage Market
We have all had enough of the ash cloud, but what the housing market could do with is a cash cloud in the form of increased mortgage approvals.
The housing market continues its snail like progress from the depths of 2008 and 2009.
But data released this week shows that mortgage lending in the first quarter of 2010 was the lowest for 10 years: This, in spite of an increase in mortgage approvals in February and March.
We are a long way from what until recently was considered a normal month of around 60,000 mortgage approvals. We have been achieving on average just 50-60% of that figure.
Without mortgage approvals increasing the market will remain depressed or dormant, depending on your half empty or half full philosophy.
The Banks and Building Societies could be accused of talking the talk but not walking the walk, despite pressure from the government to loosen the shackles on borrowing.
The problem that awaits on the horizon is the prospect, next year, of the Banks and Building Societies beginning to pay back monies from the Government bail-out.
Never one to shrink from an opportunity to mix metaphors, far from the need for a cash cloud, we may yet see the return of storm clouds over the housing market.
Image via Flickr