These recent mortgage interest rate increases are doing what they were anticipated to do – and that is cooling the red-hot housing market. This is good news for first-time buyers! Investment Executive writes, “The rate hikes have quelled the unruly bidding wars seen in many markets in the winter and encouraging prospective buyers to wait for greater price drops.”
“Homeowners with fixed mortgages will, sooner or later, be renegotiating their rates and with the Bank of Canada hiking rates, many will see their monthly housing payments increase.”
Here are some suggestions of how to lessen or avoid the worry!
“Canada’s central bank raised its benchmark interest rate Wednesday by a full percentage point to 2.5 per cent. That’s the biggest one-time increase in the bank’s rate since 1998.”
Here’s what that means for you: https://www.cbc.ca/news/business/bank-of-canada-rate-hike-1.6518161
“The Bank of Canada raised its benchmark interest rate to 1.5 per cent…and signalled that more hikes are on the way.”
Among national lenders, the average uninsured 5-year fixed rate is now 4.37%, up from 3.92% a month ago, according to data tracked by Rob McLister, rate analyst and editor of Mortgage Logic. The average rate for an insured 5-year fixed mortgage, meaning that with a down payment of less than 20%, is now 4.14%, up from 3.78% a month ago.
Some experts are suggesting housing prices will decline by 24% which would be good news for first time home buyers. Other experts are not so sure.
“The Bank of Canada hiked its key interest rate to 0.5 per cent in an effort to “take some steam” out of the economy and tamp down on surging inflation, but economists are warning that high prices will remain a regular part of life for months to come.”
Some want the housing prices to rise, some want them to fall, and some want them to just stay where they are. Which category do you fall into?
A new Canadian startup is looking to shake up the homebuying process by allowing homeowners to make their next purchase before the sale of their current home.