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mpc: 14 There were now more signs that the pace of house price increases was beginning to slacken. The three-month-on-three-month rate of increase of the average of the Halifax and Nationwide indices had fallen in July for the second consecutive month. The June RICS survey showed a second consecutive fall in the net balance of estate agents reporting price increases and a fall in the ratio of house sales to stocks on estate agents' books: a range of other indicators of housing market activity, such as those of mortgage approvals and net reservations, had also declined. Agents' contacts confirmed this picture. A deceleration in house prices would tend to slow the growth of consumption, but it was unclear how rapidly and by how much house price inflation would moderate. Also, it was uncertain how large the impact would be of any given change in house prices on consumption. That depended on factors such as the proportion of households who were credit constrained and the extent of demand for housing as an investment asset.