Hi all,
the pound suffered more today as mortgage approvals fell 65% y/y in July, according to the British Bankers Association.
Holy cow!
The number is 22,448 loans, the lowest in 11 years, although up from 22,369 in June, the lowest since records began in 1997. The sterling value of mortgages fell to £3.2 billion, the lowest since 1998. The BBA says it’s premature to think about recovery. Even re-mortgage approvals fell 21% y/y. Clearly lenders are making things harder for buyers, and the government may consider reducing the transfer tax on house purchases to unclog the market.
But prices are still down, with HBOS naming 8.8% y/y for July
Read more at www.rts-forex.com
Maybe i buy a boat instead
Bye for now
IMS Foreign Exchange - Buy Euros - Best Euro Rates
Tuesday, August 26, 2008
Thursday, August 21, 2008
Commonwealth Bank of Australia, has lowered its fixed rate mortgages
AUSTRALIA'S largest home lender, Commonwealth Bank of Australia, has lowered its fixed rate mortgages for the second time this month but says it cannot guarantee matching a likely rate cut next month by the central bank.
Commonwealth Bank today announced a series of cuts to its fixed rate home loans just hours after rival National Australia Bank promised to pass on in full a potential 25 basis point cut by the Reserve Bank of Australia (RBA) next month.
From August 25, the Commonwealth's one-year guaranteed fixed rate home loans will fall 25 basis points from 8.94 per cent to 8.69 per cent.
Full story at News.com.au
this is good news as the property market in Australia has been suffering as the cost of a mortgage has become prohibitive to most first and second home buyers.
The Australian dollar though has been hurt by the potential fall in interest rates, which has seen the pounds to Australian dollar exchange rate rise by almost 8 percent in the last 6 weeks.
The Australian Dollar outlook is for the exchange rate to hit 2.2000 in the coming weeks although that relies heavily on no further bad news from the UK. At the moment this seems very unlikely as the UK is being battered by poor growth, banks exposure to the continuing credit crunch, potential cut in UK interest rates and falling UK house prices.
Pounds to Australian Dollars exchange rate is currently trading 2.1400
Commonwealth Bank today announced a series of cuts to its fixed rate home loans just hours after rival National Australia Bank promised to pass on in full a potential 25 basis point cut by the Reserve Bank of Australia (RBA) next month.
From August 25, the Commonwealth's one-year guaranteed fixed rate home loans will fall 25 basis points from 8.94 per cent to 8.69 per cent.
Full story at News.com.au
this is good news as the property market in Australia has been suffering as the cost of a mortgage has become prohibitive to most first and second home buyers.
The Australian dollar though has been hurt by the potential fall in interest rates, which has seen the pounds to Australian dollar exchange rate rise by almost 8 percent in the last 6 weeks.
The Australian Dollar outlook is for the exchange rate to hit 2.2000 in the coming weeks although that relies heavily on no further bad news from the UK. At the moment this seems very unlikely as the UK is being battered by poor growth, banks exposure to the continuing credit crunch, potential cut in UK interest rates and falling UK house prices.
Pounds to Australian Dollars exchange rate is currently trading 2.1400
Friday, August 15, 2008
UK Banks face escalating losses on toxic debt
Oh dear,
Looks like the mortgage market isnt going to get better any time soon as Barclays, HBOS, and other British banks may have to raise new capital to cover escalating losses on toxic debt and meet fresh needs if the economy slides into recession, according to analysts at Merrill Lynch, warning that mortgage lenders across the region may face another $120bn in write-downs.
Bye for now
Buy Euros - Best Euro Rates
Looks like the mortgage market isnt going to get better any time soon as Barclays, HBOS, and other British banks may have to raise new capital to cover escalating losses on toxic debt and meet fresh needs if the economy slides into recession, according to analysts at Merrill Lynch, warning that mortgage lenders across the region may face another $120bn in write-downs.
Bye for now
Buy Euros - Best Euro Rates
Thursday, August 14, 2008
Australian Banks Should Cut Interest Rates
Hi All,
A lot of noise is coming today from the Reserve Bank of Australia about Australian Interest Rates. The central bank said that it was in the interest of the country's retail banks to lower lending rates when the official cash rate is lowered.
The comments were made at a parliament meeting between lawmakers and the Deputy Governor of the Reserve Bank of Australia (RBA) Ric Battelino and Assistant Governor Philip Lowe.
This is response to the Australian Banks stating that mortgage rates need to raise due to the cost of funding.
Personally i would rather sell something for £1.10 and make £0.10 than sell something for £1.20 and not sell it. Banks need to understand that times are tough and unless that want people to default they are better off cutting rates and making life easier for all.
Than maybe I can finally sell my House!
Bye For Now
IMS Foreign Exchange
A lot of noise is coming today from the Reserve Bank of Australia about Australian Interest Rates. The central bank said that it was in the interest of the country's retail banks to lower lending rates when the official cash rate is lowered.
The comments were made at a parliament meeting between lawmakers and the Deputy Governor of the Reserve Bank of Australia (RBA) Ric Battelino and Assistant Governor Philip Lowe.
This is response to the Australian Banks stating that mortgage rates need to raise due to the cost of funding.
Personally i would rather sell something for £1.10 and make £0.10 than sell something for £1.20 and not sell it. Banks need to understand that times are tough and unless that want people to default they are better off cutting rates and making life easier for all.
Than maybe I can finally sell my House!
Bye For Now
IMS Foreign Exchange
Tuesday, August 12, 2008
Spanish Banks feel the Housing Market Crash
Spanish banks could be next in line to feel the global financial crunch, the WSJ reports.
They say that with Spanish housing market bust taking a toll on Spanish builders, Spanish homeowners and the broader economy, the outlook is dimming, particularly for Spain's system of local savings banks, which generate roughly half of the country's lending and deposit-taking.
Bye For Now
Best Euro Exchange rates when you need to Buy Euros
They say that with Spanish housing market bust taking a toll on Spanish builders, Spanish homeowners and the broader economy, the outlook is dimming, particularly for Spain's system of local savings banks, which generate roughly half of the country's lending and deposit-taking.
Bye For Now
Best Euro Exchange rates when you need to Buy Euros
Tuesday, August 5, 2008
Australian Banks Gobble Mortgage Loans Pie
Australian Banks Gooble Mortgage Loans Pie
By Alex Tilbury August 04, 2008 08:39am
Mortgage Calculator
Australian Mortgage Customers be left at the mercy of the big banks as the only remaining mortgage lenders because the residential mortgage-backed security market is in danger of collapsing.
Securitisation has helped deliver cheaper home loans and a wider choice of mortgage products over the last two decades. But as non-bank lenders leave the market, the competitive pressures that have kept mortgage rates low may also disappear.
"The RMBS market is dying on the vine,'' says Greg Medcraft, chief executive of the Australian Securitisation Forum.
"The RMBS market has been an important driver of competition and innovation in the mortgage market.'' Confidence among institutional lenders, who buy the RMBS bonds that fund the mortgages that hundreds of thousands of Australians use to buy their homes, is so low that only $1.9 billion in RMBS bonds were bought in the first six months of this year compared with $47 billion during the same period last year.
This low volume of housing bonds issuance is transforming the mortgage market as non-bank lenders get crowded out by the big banks and evaporating competition.
Mr Medcraft says the five largest banks have increased their home mortgage market share dramatically in recent months.
After steadily falling from 65 to 58 per cent between 2004 and 2007, the RMBS drought has seen banks reclaim 10 per cent of the market, returning them to the glory days when they dominated it. Non-bank lenders entering the home mortgages market saw spreads, the gap between actual mortgage rates and the official Reserve Bank rate, drop two-thirds from nearly 5 per cent to now less than 2 per cent.
If you are looking for Mortgages in Australia contact IMS Foreign Exchange
Pounds to Australian Dollars currently 2.1200
By Alex Tilbury August 04, 2008 08:39am
Mortgage Calculator
Australian Mortgage Customers be left at the mercy of the big banks as the only remaining mortgage lenders because the residential mortgage-backed security market is in danger of collapsing.
Securitisation has helped deliver cheaper home loans and a wider choice of mortgage products over the last two decades. But as non-bank lenders leave the market, the competitive pressures that have kept mortgage rates low may also disappear.
"The RMBS market is dying on the vine,'' says Greg Medcraft, chief executive of the Australian Securitisation Forum.
"The RMBS market has been an important driver of competition and innovation in the mortgage market.'' Confidence among institutional lenders, who buy the RMBS bonds that fund the mortgages that hundreds of thousands of Australians use to buy their homes, is so low that only $1.9 billion in RMBS bonds were bought in the first six months of this year compared with $47 billion during the same period last year.
This low volume of housing bonds issuance is transforming the mortgage market as non-bank lenders get crowded out by the big banks and evaporating competition.
Mr Medcraft says the five largest banks have increased their home mortgage market share dramatically in recent months.
After steadily falling from 65 to 58 per cent between 2004 and 2007, the RMBS drought has seen banks reclaim 10 per cent of the market, returning them to the glory days when they dominated it. Non-bank lenders entering the home mortgages market saw spreads, the gap between actual mortgage rates and the official Reserve Bank rate, drop two-thirds from nearly 5 per cent to now less than 2 per cent.
If you are looking for Mortgages in Australia contact IMS Foreign Exchange
Pounds to Australian Dollars currently 2.1200
Monday, August 4, 2008
Spanish property prices have fallen by 30% say estate agents
Spanish property prices have fallen by 30% say estate agents
Spanish property prices have fallen by 30% since Spain’s economic downturn began last year, says Santiago Baena, president of the API real estate agents association (Colegios Oficiales de Agentes de la Propiedad Inmobiliaria).
Speaking at a recent conference on Spain’s property crisis, and reported in the Spanish press, Baena said that the adjustment in Spanish property prices currently underway is brutal, and that the situation this year is radically different to last year, when the sector was already absolutely paralysed.
Spain’s construction sector won’t stabilise and start to recover until 2009, forecasts Baena.
Baena also pointed out that many of the sector’s problems are due to a lack of regulation in the sector, and called for more legal protection for consumers. He recommends stronger legislation and the introduction of professional qualifications for real estate brokers. According to Baena, minimum rules of the game are needed to prevent a market of the law of the jungle in which anyone can operate without any code of conduct or oversight.
He also called for a reform of local government financing, so that town councils don’t have to rely on the construction sector for their finances. Baena described the present situation as shameful, and called for new legislation.
Baena then had a go at banks, who he said lent with enormous generosity in the good times, but whoSpanish Banks now won’t lend to anyone. He accused them of doing a disappearing act when the going gets tough.
Despite everything, Baena argues that now is a good time to buy property in Spain.
Read More at Spanish Property Insight
For the Best Exchange Rate when Buying Euroscontact IMS Foreign Exchange
Spanish property prices have fallen by 30% since Spain’s economic downturn began last year, says Santiago Baena, president of the API real estate agents association (Colegios Oficiales de Agentes de la Propiedad Inmobiliaria).
Speaking at a recent conference on Spain’s property crisis, and reported in the Spanish press, Baena said that the adjustment in Spanish property prices currently underway is brutal, and that the situation this year is radically different to last year, when the sector was already absolutely paralysed.
Spain’s construction sector won’t stabilise and start to recover until 2009, forecasts Baena.
Baena also pointed out that many of the sector’s problems are due to a lack of regulation in the sector, and called for more legal protection for consumers. He recommends stronger legislation and the introduction of professional qualifications for real estate brokers. According to Baena, minimum rules of the game are needed to prevent a market of the law of the jungle in which anyone can operate without any code of conduct or oversight.
He also called for a reform of local government financing, so that town councils don’t have to rely on the construction sector for their finances. Baena described the present situation as shameful, and called for new legislation.
Baena then had a go at banks, who he said lent with enormous generosity in the good times, but whoSpanish Banks now won’t lend to anyone. He accused them of doing a disappearing act when the going gets tough.
Despite everything, Baena argues that now is a good time to buy property in Spain.
Read More at Spanish Property Insight
For the Best Exchange Rate when Buying Euroscontact IMS Foreign Exchange
Subscribe to:
Posts (Atom)