BBA Signals Continued Real Estate Strength
A light release slate and, as noted yesterday, the uncertainty surrounding the US interest rate kept pound trading relatively light Tuesday morning. BBA May Mortgage Approvals reported at 81.3k against a 67.7k revised total for April, while mortgage lending remained at 5.7 billion pounds. The increase suggests continued strength in the British housing market, which has been growing very quickly in the first half of the year. Some analysts have predicted that rising rates and inflationary pressures will drive down the real estate market in the coming months. Thursday’s Bank of England mortgage lending figures should provide a better insight into mortgage lending totals and direction of the important sector of the economy. The elephant in the room remains this Thursday’s FOMC meeting, which is expected to result in a 25bp hike. Some analysts, however, have suggested a 50bp hike could be in the making. As of 8:45GMT GBP/USD traded at 1.8230, down from Monday’s New York close at 1.8234.
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