House prices rise after seven months of falls, says Nationwide
House prices rise after seven months of consecutive declines, says Nationwide, as April’s rise adds £3,319 to the cost of the average home
House prices rose for the first time in eight months in April, with monthly growth of 0.5 per cent adding £3,319 to the cost of the average home.
This means the median house price in the UK is now £260,441, compared to £257,122 in March, according to Nationwide’s latest house price index.
However, experts warn that monthly data can often be volatile and point to longer-term numbers as a better guide to market direction.
House prices are 4 percent below the peak in August 2022 and fall by 2.7 percent annually.
Median house price is now £260,441, up 0.5% from March
Robert Gardner, Nationwide’s chief economist, said: “Recent data from the Bank of England suggest that housing market activity remained subdued in the early months of 2023, with the number of mortgages approved for home purchases falling nearly 40 per cent below that in February. the level of one year. ago, and about a third lower than pre-pandemic levels.
“However, in recent months, industry data on mortgage applications indicate signs of an uptick.”
Mortgage rates spiked last October in the wake of Liz Truss’s chaotic mini-budget, sending the cost of borrowing skyrocketing.
Rates have since fallen, with the five-year fixed deal average at 4.3 percent, according to the Bank of England.
Rates spiked in October at an average of 5.6 for a five-year fix, according to the lender, but there are now a number of deals in the market for less than 4 percent.
At the same time, a surge in new home loan launches means the number of mortgages available to borrowers is more than double that of last October.
Consumer confidence has risen slightly on hopes that inflation will come down later this year
In addition, Gardner noted that consumer confidence has improved despite remaining subdued by historical standards.
People’s perceptions of their own financial position in the next 12 months and general economic conditions in the coming year have improved. Analysts expect inflation to fall sharply in the second half of the year, despite inflation remaining stubbornly high at 10.1 percent.
There is hope that this will increase activity in the housing market, although Gardner warns that it will take time for household finances to recover as wages have not kept pace with inflation.
Mortgage rates shot up in October, but have been slowly falling since the beginning of this year
Mark Harris, CEO of mortgage broker SPF Private Clients, said: ‘Swap rates, which underpin the pricing of fixed-rate mortgages, have risen again due to short-term volatility.
“However, enthusiasts continue to lower their fixed rates, albeit at a slower pace than before, with greater discounts on higher loan-to-value mortgages as they try to attract new buyers.”
What to do if you need a mortgage
Borrowers who need to find a mortgage because their current fixed-rate contract is about to expire, or because they have agreed on a home purchase, should explore their options as soon as possible.
This is Money’s best mortgage interest calculator powered by L&C that can show you deals that match your mortgage and property value
What if I have to borrow again?
Borrowers should compare rates and speak with a mortgage broker and be prepared to trade to secure a rate.
Anyone with a fixed-rate deal expiring in the next six to nine months should research how much it would cost them to re-mortgage now — and consider getting a new deal.
Most mortgage agreements allow fees to be added to the loan and are not charged until it is closed. By doing this, borrowers can secure a rate without paying expensive arrangement fees.
What if I buy a house?
Those with an agreed home purchase should also aim to secure rates as soon as possible so they know exactly what their monthly payments will be.
Homebuyers should be careful not to overextend themselves and be prepared for the possibility that house prices could fall from their current highs, due to higher mortgage rates limiting people’s borrowing capacity.
Compare mortgage payments
The best way to compare mortgage rates and find the right deal for you is to talk to a good real estate agent.
You can use our best mortgage interest calculator to display deals that match your home value, mortgage size, term and fixed interest needs.
However, bear in mind that rates can change quickly, and so the advice is that if you need a mortgage you should compare rates and then speak to an estate agent as soon as possible so they can help you find the right one mortgage for you.
> Check out the best fixed rate mortgages you can apply for