The housing market expected to slow... (according to Lloyds)

[Mark Rocks]

One of the biggest mortgage lenders in the country says that we should expect the market to slow down soon. 

Lloyds Bank reckon that rising interest rates are going to make lending criteria harder for people to get mortgages, which will curb the explosive growth in the market we’ve seen recently. 

Now, this isn’t the first time we’ve read headlines claiming the market was cooling, but time will tell.  

What do you reckon? Are we in for a slow-down in the market? 

https://www.bloomberg.com/news/articles/2022-07-27/uk-housing-market-to-slow-says-biggest-mortgage-lender-lloyds 

[george-choy]

We can contrast that with the scrapping of mortgage affordability tests in August 2022 for home buyers.

Greater access to mortgage finance has in the past led to a booming market.

[EvolutionBlogger]

I definitely think we're headed for a slowdown. Interest rate rises are a sure fire way to reduce house prices

I rather think it's a good thing. House prices need to come down. In London, property is unaffordable unless you're an oligarch
 

[robertgollings_gmail_com]

Property prices have been racing ahead for a number of years now. A slowdown is due, perhaps this will trigger a healthy pause

[EvolutionBlogger]

I think we could be headed for something more dramatic than a healthy pause. Rising interest rates will hurt

In the US, the Fed Funds rate is now at 2.5% and going higher. If we get 4% interest rates, how many mortgages will become unaffordable?