United Kingdom BBA Mortgage Rate

Info

History

Chart

Impact:

Low

Next Release:

Date:

Period: Jun

What Does It Measure?

The BBA Mortgage Rate measures the average interest rates charged by banks and other mortgage lenders in the United Kingdom for residential mortgage loans. It focuses specifically on the cost of borrowing for homebuyers, assessing key areas such as consumer credit conditions and housing market dynamics.

Frequency

The BBA Mortgage Rate is released on a monthly basis, providing new figures typically in the first week of each month, reflecting data collected from the preceding month.

Why Do Traders Care?

Traders monitor the BBA Mortgage Rate due to its direct correlation with the housing market and overall consumer confidence in the UK economy. Changes in the mortgage rate can significantly impact the demand for housing, influencing key financial instruments like the British pound as well as equities related to real estate.

What Is It Derived From?

The BBA Mortgage Rate is derived from data reported by various banks and building societies in the UK, encompassing a survey of loan agreements and mortgage products offered. The collection methodology involves aggregating the interest rates on newly agreed mortgages, capturing a range of terms and conditions to provide a representative average.

Description

The BBA Mortgage Rate is considered a coincident indicator reflecting current market conditions in the mortgage lending sector. It provides insight into the affordability of housing and can signal shifts in consumer behavior, potentially impacting macroeconomic performance and housing market trends.

Additional Notes

As a coincident measure, the BBA Mortgage Rate is often compared to other indicators such as the House Price Index and the Bank of England Base Rate, providing context for economic health in the UK. Its relevance extends to understanding regional disparities in mortgage costs and their potential effects on local economies.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bullish for GBP, Bearish for Stocks. Lower than expected: Bearish for GBP, Bullish for Stocks. Increased mortgage rates can indicate tightening credit and higher borrowing costs, which is generally bad for stocks due to reduced consumer spending, but good for GBP as it may reflect confidence in the banking sector's stability.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Time	Actual	Forecast	Previous	Surprise