Rising U.K. Mortgage Approvals No Proof Of Recovery

The growing number of mortgage approvals is not necessarily a sign the U.K. housing market is approving, according to economists, reports The Guardian.

The growing number of mortgage approvals is not necessarily a sign the U.K. housing market is approving, according to economists. The British Bankers Association reported approvals rose to an eight-month high in March, but the figure was still down nearly 10% from a year earlier, and was well below the monthly average of the past 14 years. Howard Archer, chief economist at IHS Global Insight, predicts home prices will drop 5% this year, which will result in a 10% decline from the high levels seen in the first half of 2010.

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