What's making headlines in the rest of the press
The CBI has called on the Bank of England to cut interest rates. The employers' lobby group said businesses had not yet felt the effects of economic recovery (Guardian, 4 August). However, it is unlikely to get its wish, according to the Western Mail on 4 August, as the cost of borrowing is already at its lowest since 1955.

The banks are expecting rises in interest rates in the long term, if fixed-rate home loans are anything to go by. The cost of fixed-rate loans has started to rise and this could hit the housing market, according to the Observer on 3 August.

Across the Atlantic, though, US homeowners are losing money on fixed-rate mortgages because they move house sooner than they expect (Financial Times , 4 August). The news will be received with interest in the Treasury, where chancellor Gordon Brown is investigating how to make long-term fixed-rate mortgages more popular.

Housebuilder Wimpey has unveiled a £123m profit (Daily Telegraph, 31 July). But they may have only a short time to enjoy the boom, according to the Financial Times on 2 August, as rising land prices are squeezing housebuilders' profits.

Source

Housing Today