In last week’s posting, a federal economist expressed doubt that Canada would be implementing changes to the overnight interest rate in the near future.
Consistent with those predictions, Prime Minister Stephen Harper announced this Wednesday at a Mississauga power plant that the federal government does not have plans to take “immediate action” relating to Canada’s housing market. However, he acknowledged that developments are being monitored closely.
Mr. Harper made these comments when asked about the rate reduction this week by a number of several big banks on a five-year, fixed rate mortgage from 2.99 per cent to 2.79 per cent. When rates were first reduced to 2.99 per cent in 2013, then-finance minister Jim Flaherty had warned banks and other lenders from “race to the bottom” tactics.
Mr. Harper said, “I’m not saying I’m unconcerned. But we are watching it. We’re not planning to take any immediate action. We continue to watch the housing market and the lending and borrowing situation very carefully.”
So if you are looking to relocate or invest in a property in the coming months, now may be time to start house hunting. Speak to a knowledgeable and experienced Century 21 King’s Quay sales representative today to learn more about today’s market conditions.