BOE Says It’s Alert to Housing Market Stability Risks: Economy
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Housing was an early indicator of — and, of course, outsize contributor to — the nation’s economic downturn. Listing-service data for the Cleveland area show that sales dipped from 2005 to 2006, while other parts of the nation were riding the end of the rush. In Cuyahoga, Geauga, Lake, Lorain and Medina counties, annual sales fell 32.6 percent from their 2005 peak to their 2010 trough.
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While the Royal Institution of Chartered Surveyors urged the FPC to set a cap on price increases, BOE Governor Mark Carney has downplayed the concerns. The FPC said it has a range of tools to address any risks. These include guidance on underwriting standards by banks, additional capital requirements on mortgage loans and the tightening of lenders affordability tests. The FPC, set up to monitor financial stability, didnt make any new recommendations in its statement today. After asking the Financial Conduct Authority and the Prudential Regulation Authority in June to examine the vulnerability of financial institutions to a jump in interest rates, it said today a preliminary probe suggested that a moderate rise did not pose an immediate threat. Hedge Funds The panel highlighted that responses to the review didnt take account of more significant stresses nor potential amplification channels. It also said the levels of leverage and potential vulnerability of hedge funds needed to be looked at more property management companies baltimore closely. The FCA and bank staff will gather more information on hedge funds to improve assessment of stability risks, according to todays report. Recent data indicate a pickup in the housing market.
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