Mortgage Rates and Current Economy

Bank of Canada's reducing the interest rates came in as a huge surprise in financial industry. When our Dollar is already loosing ground and Crude prices are declining in international market, both had very adverse effects on our Economy. Since the state of Alberta is where most oil sands are, had seen the most effect of the down fall. Real estate market have dropped down drastically even with the reduced interest rates, whereas in Ontario the reduced rates and lack of inventory have overheated the real estate market. With people loosing jobs in Alberta might migrate to other provinces resulting in rental and sales market up shift in other provinces. With inflation rate going up we might see a slight increase in rates probably in second quarter of 2015 and more interest rate hicks in following quarters.

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D. Pal Singh

D. Pal Singh

Broker
CENTURY 21 New Star Realty Inc., Brokerage*
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