3 December 2010
“It’s great news for potential home buyers and existing home owners. Today rates are historically low and it’s quite possible that we may not see them so low again”.
“The spring real estate market is expected to be strong, so even if we see gradual interest rate increase, it won’t influence too many people because of the recent mortgage rules changes (now, when applying for variable rate mortgage, you have to qualify for the five-year posted rate)”.
According to recent Statistics Canada report, the third quarter showed the weakest GDP growth rate in a year.
In October Bank of Canada Governor Mark Carney gave no certain information concerning Canadian economic recovery. He only noted that the central bank would plot its next move with extreme caution and carefulness.
By the way, as we’ve already mentioned, according to CIBC World Markets senior economist Benjamin Tal at CAAMP Forum, strong American monetary stimulus will also prolong low rates in the USA. It’s considered to be another sign of Canada not raising rates in the nearest future.