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Housing market recovery stutters as mortgage rates rise
The Royal Institution of Chartered Surveyors (Rics) has reported home buyer inquiries are "flatlining" as higher mortgage rates squeeze affordability. The property industry survey shows estate agents have scaled back their expectations as climbing borrowing costs put the brakes on demand. The institution said the property markets in London and the south of England had seen a particular "loss of impetus". A net balance of 1% of property professionals reported new buyer inquiries falling rather than rising in April, following a balance of 6% reporting inquiries rising in March. Over the coming year, a net balance of 33% of professionals expect house sales to rise rather than fall. A balance of 5% of professionals reported prices falling rather than rising in April. This was unchanged from the previous month. Simon Rubinsohn, Rics chief economist, said: "A modest back-up in mortgage pricing has contributed to the flatlining in the buyer inquiries metric over the past month."
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