Further signs the UK housing market is cooling off have just been made public. Mortgage approvals are now scraping the bottom of the barrel and have fallen to their lowest level since the middle of last year. The year began with the market on fire. The economic recovery was in full swing and the data reflected it.  Houses were selling at a stellar pace and remortgages were on fire.

October tallied more than 59,400 mortgages, down from 61,234 in September. October was not only the first month of falling temperatures, but also the fourth month in a row for a monthly decrease in mortgage approvals.

Even though house prices are measurably higher at this point in the year compared with last year, primary indicators of growth within the housing market have showed noticeable slowdown. House prices were sitting at more than 12% higher on average in the month of September compared with the same month last year.

Howard Archer of IHS Global Insight believes the UK housing market is ending the year on a down note and there is compelling evidence to support such a status.

Consumer confidence has not however been affected.  Consumer credit took off in the month of October to the tune of £1.1bn. The average for the month is more than £200m less than that.  Consumers are speaking loud and clear and are planning to maintain above average spending habits through the holidays.    

Remortgage activity remains subdued and more of the same is expected through the beginning of the year.  The change in interest rate is up in the air for now and no new news is expected for possibly, months.