UK mortgage approval numbers rise

UK mortgage approval numbers rise
The Financial Express, January 5, 2010, Page 18

Reuters, London

British lenders approved the highest number of mortgages for house purchase since March 2008 in November and the Bank of England’s preferred gauge of money supply showed a marked pick-up, official figures showed on Monday.

The data come hot on the heels of a surprisingly positive manufacturing survey and will likely strengthen expectations that the BoE will not extend its 200 billion pound quantitative easing policy once the remaining funds are spent during the next month. The Bank of England said mortgage approvals numbered 60,518 in November, rising from an upwardly revised 57,718 in October and more than double its record low of 27,162 set in November 2008. Analysts had forecast a reading of 58,000.

They are consistent with our more constructive view on UK housing as well as for overall economic growth this year. The BoE’s preferred money supply gauge—M4 excluding intermediate other financial corporations—rose by 0.9%, its fastest monthly pace since April, and the three month annualised rate picked up to -2.2% from October’s -5.2%.