MNI POLICY: BOE: Mortgage Interest Rates Hit Fresh Low>

-Mortgage Approvals Nudge Up In Sep To 65,919 Versus 65,681 Aug 

     By David Robinson

     LONDON (MNI) - Average interest rates on new mortgages hit

new lows in September with housing market activity flatlining, Bank 

of England data showed.

     The following are key points from the BOE Money and Credit data 

sets: 

     -The average effective rate on new mortgage was just 2.00% in 

September, down from 2.04% in August, the lowest reading since November 

2017. The average rate on the stock of mortgages was 2.39%, down from 

2.42% in August, the lowest since January 2016.

     Market pricing suggests that Bank Rate will remain very low for 

long. There are rough correlations between swap rates and mortgage rates 

but on a monthly basis the effective rates on new business have bobbed 

around, rising from 2.02% in June to 2.04% by August before hitting 

2.00% in September.

     -The BOE data showed mortgage approvals, a reliable indicator of 

future housing market activity, flatlining. 

     The number of approvals edged up to 65,919 in September from 65,681 

in August but down from 67,109 in July. 

     The latest data from Nationwide out Tuesday showed house price 

nationally running near flat on the year and the market overall is 

showing no clear upward momentum. 

     -Net unsecured lending rose to stg0.828 billion in September form 

Stg0.969 billion in August. These levels are relatively low by historic 

standards and point to subdued credit demand. 

 -London newsroom: e-mail: david.robinson@marketnews.com  

[TOPICS: M$B$$$,M$$BE$,MABDS$]