Mortgage figures ‘back in the red’ after two weeks of growth: Twenty7Tec
The volumes of searches for purchase mortgages were down 5.42% week-on-week.
“This week’s figures are all in the red after the last couple of weeks’ recovery.”
Twenty7Tec’s weekly mortgage data shows that the volume of purchase and remortgage searches dipped last week as ongoing Covid-19 uncertainty and the VE bank holiday weekend impacted demand.
The volume of searches in the week to Saturday the 9th of May fell by 7.48% compared to the previous week, but remains 11.07% higher than four weeks ago.
Searches for remortgages are down 8.45% on the prior week and down 6.05% compared to two weeks ago. They are flat with four weeks ago, up just 0.44%.
The volumes of searches for purchase mortgages were down 5.42% week-on-week. However, they were up 5.75% on two weeks ago and up 42.44% on four weeks ago.
Despite this, searches for purchase mortgages are still only around one quarter of pre-coronavirus levels. Purchase mortgages normally represent 55-60% of the market. Last week, they represented 32.45%, up from recent lows of 24.5%.
James Tucker, CEO of Twenty7Tec, said: “This week’s figures are all in the red after the last couple of weeks’ recovery. In terms of total search volumes, we are currently at around 44.4% of pre-lockdown searches for purchase and remortgages combined.
“Remortgages, which have been propping up the market in terms of volumes, have dipped a little further and are basically flat compared to four weeks ago.
“However, this week’s figures were clearly affected by the VE Friday bank holiday. If we compare Mon-Thurs this week with the week prior then searches for purchase mortgages are actually up 8.42% and searches for remortgages are up 6.96%.
“The week ahead may show greater signs of whether or not the gentle recovery in our market continues.
“The housing and mortgage markets are looking for a greater clarity on exiting lockdown. The Prime Minister mentioned construction in his Sunday evening address to the nation, but our industry needs the detail to understand how all points along the chain in the housing and mortgage markets are expected to function.
“New builds should begin to flow through as and when construction works begin again. Sales will be mostly affected by physical viewings, which look more likely to be allowed under the new guidance. Then, in just a few short weeks, we might expect activity levels to pick up in the mortgage industry.”