Housing market activity slows as interest rates rise
Mortgage interest rates have continued to trend higher, and look poised to breach 5% for the first time since early 2011 in October. Alongside mortgage lending standards which are still tight, that has weighed on home sales. House price growth is also easing back; monthly gains on the FHFA index have been 0.4% or lower since March. Rental growth is stable at around 3.6% on the CPI measure, and with house price growth slowing the gross rental yield should also soon stabilise at around 6%.