Mortgage activity rises in Britain

LONDON, July 29 (UPI) -- Mortgage approvals exceeded expectations in Britain in June, reaching the highest level in more than a year, the Bank of England said Wednesday.

The 14,584 mortgage approvals beat expectations by 584, The Times of London reported. However, mortgage lending at $561.8 million was far lower than the $600 million economists predicted.

In a second indication that the housing market in the United Kingdom was showing signs of recovery, the Land Registry reported home prices increased in June for the first time since December 2007.

IHS Insight Chief Economist Howard Archer said, "It is mortgage approvals that are seen as the key forward looking indicator for housing market activity."

"Nevertheless, even in June, housing market activity was still very low by past norms and at a level typically consistent with falling house prices,"" he said.