Housing market starting to slow

The last month has brought the first concrete evidence that higher interest rates are starting to dent housing market activity, with the number of mortgage approvals falling for the third month in a row in April. (See Chart of the Month.) However, with overall economic activity remaining robust and the upside risks to inflation still the MPC’s key concern, the housing market would have to turn down much more sharply to prevent interest rates from rising further over the coming months.