- Prior 0.0%; revised to -0.2%
- House prices -2.6% y/y
- Prior -1.0%; revised to -1.1%
This marks a third consecutive monthly decline for US house prices, with the typical UK property now costing £285,932 as compared to the peak in August last year at £293,992. Halifax notes that:
“These latest figures do suggest a degree of stability in the face of economic uncertainty, and the volume of mortgage applications held up well throughout June, particularly from first-time buyers. That said the housing market remains sensitive to volatility in borrowing costs. Concerns about persistent inflation have led to a significant increase in the cost of funding. Coupled with base rate rising by another 50bp, this contributed to a big jump in typical mortgage rates over the last month.
“The resulting squeeze on affordability will inevitably act as a brake on demand, as buyers consider what they can realistically afford to offer. While there’s always a lag effect when rates go up, many existing mortgage holders with variable deals or rolling off fixed rates will likely face an increase in the next year."