U.K. Mortgage Approvals Rises To 6-Month High

The U.K. mortgage approvals rose to a 6-month high in February, the Bank of England reported Monday. 

The number of mortgages approved for house purchases rose to 61,760 in February from 60,707 in January. This was the highest since August and above the expected level of 61,000. 

IHS Global Insight's Chief UK Economist Howard Archer said the rise in mortgage approvals to a 6-month high supports the belief that housing market weakness has bottomed out and activity is now gradually turning around. 

With housing market activity seen gradually picking up over the coming months, Archer forecasts house prices to rise by around 5 percent in 2015. 

Lending secured on dwellings increased by GBP 1.7 billion after rising GBP 1.6 billion in January. Secured lending rose 0.1 percent on a monthly basis and by 1.8 percent from last year. 

At the same time, consumer credit grew GBP 0.7 billion compared to January's GBP 0.8 billion rise. It represents a monthly growth of 0.4 percent and annual 6.6 percent rise. 

M4 money supply declined 3.2 percent year-on-year in February, which was deeper than January's 2.2 percent fall. Month-on-month, it fell 0.2 percent, following a 0.7 percent decline a month ago.