| BoE's King says rate cuts more likely, won't follow Fed's lead on policy UPDATE
LONDON (Thomson Financial) - Bank of England governor Mervyn King has conceded that tighter lending conditions mean the Monetary Policy Committee is more predisposed to cut interest rates but said he will not follow the Federal Reserve's lead on policy. Appearing before the Treasury Select Committee, King, asked if tighter lending conditions meant the MPC was more predisposed to interest rate cuts, answered "yes". He conceded that UK interest rates are effectively in the same position as they were last autumn, with the two cuts in the Bank rate merely compensating for the climb in market borrowing costs. King added that when the Bank raised rates five times between 2006 and 2007, mortgage rates only increased by half the amount of the Bank rate.
Mortgage crisis may not subside for years
It may take several years before the mortgage crisis eases in places like North County, which has been especially hard hit with foreclosures."We're projected to get more foreclosures in the next six months as rates reset on adjustable-rate mortgages," said Karen Wallensack, who directs the Catholic Charities Housing Resource Center in St. Louis.The center works closely with a number of area nonprofit organizations to provide aid and counseling to homeowners facing housing and mortgage issues.She said it may be two and a half years before the crisis begins to fade.Much of the foreclosure activity remains in older, inner-core suburbs of North County."North County is one of the epicenters for foreclosures," she said.Interest rates on adjustable-rate mortgages are being adjusted upward. Higher interest rates mean higher monthly house payments that a number of homeowners can't afford.St.
Redding Amidst ‘mortgage crisis’ Realtors put market in perspective
Even to those who have weathered economic storms before, some say the recent wave of foreclosures is something they have never witnessed. Nationwide, confidence in the economy is down. And factors such as slowing retail sales and fuel prices, according to the National Association of Realtors, are having an effect on the housing market. But for seasoned Realtors, national reports on the housing market do not provide an appropriate local perspective. Permits for new construction are down significantly, and there are more existing homes on the market not selling, but the surplus inventory has evened out prices. For three local Realtors who provided insight on the current market, the equation is simple: If the price is right, the house will sell. .
|
