| The result of rising interest rates is that there is an | | | | 1998 to 5% in June 1999 was said to be a major |
| increase in mortgage payments resulting in a lower | | | | factor in the acceleration in housing market activity |
| demand for housing. On the other hand, a fall in interest | | | | during the summer of 1999. Equally the series of |
| rates should fuel higher market demand and put | | | | increases in interest rates from 5% in June 1999 to 6% |
| increasing strain on house prices. This is supposed to | | | | by February 2000 helped to take some of the excess |
| enhance expenditure connected with house-buying and | | | | demand for housing out of the market and contributed |
| the rise in prices will add to total housing wealth and | | | | to a slowdown in the rate of house price inflation |
| make consumers more positive about their personal | | | | during the summer of 2000. |
| finances.The cut in interest rates from 7.5% in October | | | | |