America is the biggest economy in the world, it is also one of the richest with average GDP per capita of around $80,000. The richest three American billionaires own more wealth than the poorest 70 countries combined. In the post-war period, US GDP increased by 900% leading to unprecedented levels of income. But, there is …
House prices are falling at their fastest rate since 2009. With average prices 5% or £14,600 lower than last year. (Both Halifax and Nationwide reporting similar falls) Whilst Property experts are hoping for a soft landing, the market still has to absorb more bad news with a record fall in mortgage approvals and the impact …
In the space of 18 months, Bank of England base rates have risen from historical lows to 5%, with more expected. It’s a remarkable turnaround for an economy accustomed to ultra-low borrowing costs – the rapid increase in rates have seen soaring mortgage costs and threatens to push an already struggling economy into recession. Yet …
High interest rates and falling house prices will fundamentally alter both the housing market, and also the economy. The last two house price crashes co-incided with two deep recessions and if prices fall as much as expected, it will worsen an already weak economy. But, it is not all bad news, falling prices could be …
Since 2008, the US economy has grown at double the rate of the UK economy. Since Covid, the UK is stagnating whilst the US has grown strongly. Despite much faster growth, inflation in the US is dropping fast, whilst the UK seems stuck with high inflation and the worst of both worlds. Why is the …
It’s not a good time to be a member of the Monetary Policy Committee. Inflation far exceeding forecasts and the Bank was forced into something of a u-turn belatedly increasing interest rates in a shock-and-awe tactic designed to regain credibility. Some critics argue the recent interest rate rises are like using a sledgehammer to crack …
With mortgage rates soaring, and with the most pessimistic forecasts that house prices could fall by up to 35%, does it make sense to wait until after the current housing crisis has eased before buying? There’s no simple answer because it depends why you are buying and where you live. But, the housing market is …
This week 2 year fixed mortgage rates rose above 6% – the highest level since Liz Truss’s mini budget of September. Why is UK Facing a New Mortgage Crisis?Watch this video on YouTube It threatens to add an extra £2,500 a year to the average mortgage. By next year, total mortgage payments could be an …