Search trends before Boe Hold show buyers ‘track’ the market: Twenty7TEC – Mortgage Strategy
Homebuyers tried to soar before announcing their announcement and fell to the Bank of England’s rate decision “a step ahead”.
The week before the Monetary Policy Committee made 400,610 mortgage searches yesterday, the second busiest pre-selected in the past year, according to Twenty7TEC, a mortgage technology provider.
Twenty7TEC director Nathan Reilly (pictured), added: “There is a lot of talk and the market is not expecting a lower tax rate.
“But it’s interesting how this expectation forms borrower behavior – surged at the beginning of the week and then dropped 13.7% on the day of the decision itself, while the average for the first three days dropped.
“It’s clear that many consumers are doing homework before announcing – we often see this pattern when buyers want to keep a step in potential market changes.”
The bank’s nine-person tax-setting agency voted 6-3 to hold the base rate, with Lieutenant Gov. Dave Ramsden, Swati Dhingra and Alan Taylor contending that 25 basis points were cut.
Twenty7tec added that standard residential searches fell from 66,491 on June 16 to 55,694 on June 19-19-19-16% down.
Although landlord searches ranged from 13,899 on June 17 to 12,341 queries on June 19, it fell 11%.
“Buyers are becoming increasingly savvy – they are planning ahead, tracking interest rate decisions and researching mortgages earlier than ever,” Reilly added.
