We've headed into an "hotter-than-usual"
Summer Market driven by:
Interest Rates. With Bond Rates that peaked-up, Lenders reacted to what they thought was going to be a new, long term outlook and bumped mortgage rates higher, by lessening the discount from posted rate.
The Crash that didn't happen. Media and Financial Market Doomsaysers were calling for it. Yet across Canada, sales volumes are up, and prices continue to gradually edge higher.
Pent-up demand. Last years's mortgage rule changes had some buyers adopting a wait and see attitude. Many waited & watched. The housing market remained resilient - now they're acting.
Thinking of selling? Call today. The market is lively and there remains a shortage of listings in many neighbourhoods.
What's Affecting Rates?
When Central Banks in both the U.S. and Canada "think out loud", markets react.
With positive economic news, Central Bankers publically mused about reducing their involvement in the "money market", allowing, or causing interest rates to rise. Bankers and Investment Dealers reacted first - Bond Markets jumped, affecting general lending rates & stock market values. Suddenly a downward spin developed and threatened the "light at the end of the tunnel".
Then last week, the U.S. Fed. back-pedalled on their previous, "iffy ideas", about easing-off their "economic support", and reaffirmed their low rate strategy for, what was at least their original committed target of mid-2015. Overnight, world markets reacted to this "good news", and it seems further rate increaseswill be delayed or even "tailed back". Supportive and predictable economic signs are again present.