2 July 2010
67% feel concerned about interest rate hikes and even 84% expect to see more increases during the next six months.
According to CIBC the Household Credit Analysis report, the residential mortgage market is expanding at 7.7%. The market is growing by 0.6% every month. It’s a very moderate growth, actually. The last time it was expanding like this for so long was in 2003.
Benjamin Tal, CIBC economist and the report’s author, says: “Today it seems the main damage is in the first-time home buyer area”.
He also noted that this trend will continue through upcoming quarters and in the end the housing market will be adjusted.
CIBC announced that the new listings rose by about 3%, but the sales fell by 9% or more.
The bank believes home prices will go down for about 10% in the next year.
Today’s arrears rate is at 0.44% and it’s 0.2% higher than in 2006.