Householders are paring back their expectations for increases in real estate prices and the wider economy.

The Bloomberg Nanos index dropped below its 12 month average at the end of last week and is at a 7 week low.

Only last month the index hit a four year high and the forecasts for the housing market were the most positive for six years. So what’s changed?

Policymakers expectations of lower growth, geopolitical unrest increasing in the middle east, lower employment growth and more analysis suggesting a slowdown in real estate!

While not all of this has happened suddenly in the last month, the raft of cautious notes was bound to affect consumer confidence.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

More market watch: