Author Topic: House Prices set to fall 10%  (Read 3244 times)

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The Prophet

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House Prices set to fall 10%
« on: June 04, 2011, 07:19:38 am »
Morgan Stanley expects house prices to fall 10% by December 2012. 
This forecast is based on the assumption that the Bank of England will raise rates to 1.5%.

The BOE aim is to keep interest rates as low as possible for as long as possible, despite the rising inflation levels to postpone home repossessions and give the banks more time to increase their balance sheets. 

With the Greek debt of €110bn it is looking increasingly likely that the European banks will take a haircut on a Greek default before the end of this year.