All tagged Variable rate Bank rate
It’s official. Both House and Condo apartment prices in Metro Vancouver dropped in July. RBC Economics says they now believe that the mortgage stress tests will have larger, longer-lasting dampening effect on home sales than we previously thought.
All levels of government have targeted a “soft landing” but will people lose interest in buying real estate if it only appreciates by 1-3% annually? Will the realization that the party is over lead investors to the exits?
Over the past ten years there have been many government interventions intended to cool the housing market. It appears we may have hit a tipping point. The market has stalled and is either about to provide a “soft landing” or “hard landing” delivering much needed affordability to the market. Alternatively, this could just be a breather before prices continue their upward march.
Over the past ten years there have been many government interventions intended to cool the housing market. It appears we may have hit a tipping point. The market has stalled and is either about to provide a “soft” or a “hard” landing which will deliver much needed affordability. Alternatively, this may be a breather before prices continue their upward march.
As expected, the Bank of Canada has raised the overnight rate to 1.50%. This is significant because the overnight rate has risen 300% since beginning of 2016 when it was only 0.5%.
In this article, we explain the impact of this trend on mortgage payments and home prices.
There have been some updates to interest rate forecasts since our last review of rates in March. The overall trend is upward but there are differing opinions on how high rates will rise.
