GBP Mortgage Approvals, Oct 29, 2024

Mortgage Approvals Remain Steady: No Impact on GBP Expected

October 29, 2024: The Bank of England (BOE) released its latest data on Mortgage Approvals, revealing a steady number of 65,000 approvals secured on dwellings for October 2024. This figure aligns perfectly with the previous month's data and the forecast, resulting in a low impact on the British Pound (GBP).

Understanding Mortgage Approvals:

The BOE's Mortgage Approvals data, also known as Approvals Secured on Dwellings, provides insights into the health of the UK housing market. This metric measures the number of new mortgages approved for home purchases during the preceding month. The data is released monthly, approximately 30 days after the month ends.

Impact on GBP:

Generally, a higher-than-expected "Actual" figure in Mortgage Approvals can be considered positive for the GBP, as it suggests increased demand in the housing market, potentially leading to economic growth. Conversely, a lower-than-expected "Actual" figure can signal a weakening housing market, potentially exerting downward pressure on the GBP.

However, it's crucial to remember that the BOE's data covers only 40% of all mortgages, with the remaining 60% encompassed by the BBA Mortgage Approvals data released a few days earlier. This overlap often results in a muted impact of the BOE data on the GBP.

Latest Data Analysis:

The consistent number of 65,000 approvals in October 2024, matching the forecast and previous month's data, suggests a stable housing market. This stability, coupled with the aforementioned overlap with BBA data, contributes to the low impact on the GBP.

Looking Ahead:

The next release of the BOE's Mortgage Approvals data is scheduled for November 29, 2024. It will be interesting to see if the current trend of stability continues or if we witness a shift in the housing market.

In Summary:

The latest Mortgage Approvals data released by the BOE shows a consistent picture of stability in the UK housing market. The lack of significant change from the previous month and the forecast translates to a low impact on the GBP. However, the upcoming November 29th release will be closely watched for any potential changes in the housing market trajectory.