Your mortgage is coming due or your considering a real estate move or new investment....interest rates factor into your your decision.
Currently rates are low in comparison to recent historical standards, making payment terms so attractive that borrowers can add or upgrade their real estate holdings without significantly increasing their monthly payments. Sounds fantastic.
One of my favorite business quotes " the only constant around here is change".
And so the question for buyers and borrowers is not what rates are today, but where will they be tomorrow?
Another favorite quote, " no one owns the future"
So with the future of interest rates in question, and really the only question is timing since the direction is for all intents and purposes already determined, there seems to be no shortage of predictions and the general concensus appears to be that rates in canada will rise sooner rather than later and mid 2010 seems to be the estimate most often repeated in the conventional media and eluded to, by Canadian Broadcasters.
But wait a minute, there are other thoughs and opinions that deserve more than just a casual glance. One such view from CIBC World Markets Economic Insights dated Feb. 28, 2010 is as follows;
"We don't see any hints that the Bank of Canada intends to extend its pledge to keep rates on hold past the middle of the year and look for 75 basis points of rate hikes in Q3. However we do expect the Bank to surprise markets by delaying any follow up move well into 2011 as Canadian economic fundamentals weaken into the second half of 2010."
This is one factor that is suggesting that the current strength in the Canadian real estate markets can continue for some time.
Note of Caution: All forecasts are based on assumptions of future events and any abnormal influence affecting those future events will also affect the accuracy of forecasts, so remain vigilante and always make informed decisions.