25 November 2010
The only bright side of recent not very optimistic economic outlook is that the normalization of both short-term and long-term interest rates will take more time than it’s been expected earlier. It means that variable rate mortgage payments will remain low for a longer period of time.
In addition to it, new homebuyers or homeowners planning to refinance will get another chance to secure rates at levels last seen during the financial crisis.
The BCREA expect mortgage rate to continue the current low-rate environment into early 2011. Then, probably, due to brighter economic outlook, a new round of tightening by the Bank of Canada will begin – it means rate hikes. But still it’s going to be at a measured pace.
In other words, with today’s good supply of homes and historically low interest rates it’s quite a great time to buy a house.