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HomeUK borrowing costs jump after shock US jobs figures

UK borrowing costs jump after shock US jobs figures

Home prices rebounded last month as lower mortgage rates fueled a resurgence in the real estate market.

Median house prices increased 1.1% in December compared to November, according to the Halifax house price index.

That was the third consecutive monthly increase after six previous consecutive declines.

That means a typical home is worth £287,105, up more than £3,000 from last month.

The price rise comes as lenders cut mortgage rates amid expectations that the Bank of England will cut interest rates this year, with several major banks starting the new year by offering interest rates. yield below 4%.

However, Kim Kinnaird, director at Halifax Mortgages, said: “The growth we are seeing is likely due to a shortage of properties in the market, rather than a strong increase in buyer demand.

“That said, with mortgage rates continuing to fall, we could see buyer confidence increase in the coming months.”

Halifax said overall property prices rose 1.7% in 2023 but predicted prices would fall between 2% and 4% this year.

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What happened overnight

Asian shares were mostly lower after a mixed session on Wall Street, although export-linked Tokyo stocks were boosted by a weakening yen.

Benchmarks rose in Tokyo but fell in Sydney, Seoul, Hong Kong and Shanghai.

The yen has weakened amid speculation that the Bank of Japan may gradually shift away from its loose policy stance as it assesses the impact of Monday’s major earthquake in central Japan.

The US dollar rose to 145.23 Japanese yen from 144.63 yen. The euro fell to $1.0930 from $1.0947. It fell 0.4% to £184.

Japan’s benchmark Nikkei 225 index rose 0.3% to 33,377.42.

Hong Kong’s Hang Seng fell 0.9% to 16,490.92, while the Shanghai Composite fell 1% to 2,926.32.

Australia’s S&P/ASX 200 fell nearly 0.1% to 7,489.10. South Korea’s Kospi lost 0.4% to 2,578.08.

US stocks are having a difficult start to the new year, with the S&P 500 experiencing its worst year since 2015 with three consecutive days of decline.

The index lost 0.3% to end at 4,688.68 points on Thursday, while the Nasdaq Composite index (which has a heavy weighting towards technology companies) lost 0.6%, closing at 14,510.3. The Dow Jones Industrial Average of the top 30 U.S. companies was unchanged at 37,440.34.

Yields on 10-year U.S. Treasury notes rose to 4% in a sharp reversal from last week, when the benchmark bond fell to a five-month low of 3.78% on recent data. saw inflation by some measures falling close to the Fed’s 2% target. .

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