Mortgages. Loans. Credit cards. Are you ready for a rate rise this summer?

Economic figures are all well and good, but for the man and woman

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in the street, it's the housing market that is perhaps the key barometer. Here the current news is good for homeowners, but perhaps less good for those aspiring to get on the housing ladder.

Currently, the housing market is buoyant. Prices rose another 2% in April according to the Halifax, ( best mortgages ) meaning that they are now some 10% higher than over the same time last year.

The problem is that sentiment in the housing market is very fickle. As soon as we get the first interest rate rise, watch the buyers dive for cover. A rise in August followed by another in early autumn, will probably cause ( life insurance quotes ) the housing market to stall. As we all know, forecasts eighteen months ago that the housing market was in for a crash proved false - and we're still not expecting prices to fall heavily. But it's the property hot spots that will bear the brunt of any slow down. They'll be the first to experience a slow down and a dose of realism in respect of prices.

At the moment nationally, the average house is being sold at around 95% of its asking price. When ( insurance ) the interest rate rises emerge, we expect to see this percentage fall to just under 90% and asking prices will trim as a result.