Housing crash is unlikely - AMI

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The Association of Mortgage Intermediaries says the housing market will slow but a crash is unlikely, as part of its Quarterly Economic Bulletin launched today.

The paper claims interest rate rises are needed because of the broad spread of economic indicators. The full impact of rate rises will not be felt for some months as borrowers begin to realise the effects rates are having on their wallets. Chris Cummings, director general of AMI, says: “Another increase in base rates to 6% is inevitable given the strength of the key indicators. If rates rise as soon as August, then another increase, possibly in November, to 6.25% would become more likely.” Cummins says that low unemployment, supply problems and strong GDP will underpin demand in the housi...

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