The U.K. mortgage lending showed some decline in March. This is confirmed by the recent BBA report. Analysts say this decline has to do with higher taxes on house purchases, which were introduced on April 1st.
According to the report, the amount of approved mortgage loans dropped from February’s 45646 down to 45096 contracts in March. The actual figures disappointed investors since they had expected an increase all the way up to 47000 contracts. It is interesting to note that this was the lowest amount of approved mortgage loans since December 2015, when the indicator came in at 43675 contracts, Market Leader reports.
The BBA report also reads that the mentioned decline took place amid the mentioned tax hike in April 1st. The thing is, the increase in mortgage approvals seen over the past few months had to do with higher demand for the second residential property unit to further lease it. In advance of the tax hikes, they expected more mortgage approvals. However, the market reacted with costlier mortgage loans, which triggered the recent decline.
FOREX
In the meantime, Masterforex-V Academy reports that the British Pound is still rallying against the U.S. Dollar within the scope of a long-term uptrend. To be more specific, GBPUSD is rallying within the scope of wave a(C )/C of level Daily. There is a minor move – wave 3/C inside the mentioned bullish momentum.
The closest levels of resistance are MF pivot 1.4668 and the top of the descending MF sloping channel + Fibo levels 1.4773, 1.4861. A break below MF pivot 1.4131 and the bottom of the ascending MF sloping channel is going to put an end to the current move.
