Continued low mortgage interest rates offered by the bank of Canada are the topic of discussion in a recent report from the Real Estate Board of Greater Vancouver.
Why are rates remaining low? See below for an exert from the report from the REBGV:
"On September 3, 2014, the Bank of Canada announced that it was holding its trend-setting overnight lending rate at one per cent. The overnight rate has not moved in four years. It’s likely that it will remain where it is for some time yet. Why?
1. Inflation is on target
2. Uncertainty remains high
3. Canadian exports need help from the currency exchange rate
4. Higher exports have not yet translated into stronger investment or hiring
...With these reasons in mind, interest rates are unlikely to rise in the near future. One notable change in language in the September 3 announcement was the removal of any references to a soft landing in the housing market. The Bank said that the housing market has in fact remained stronger than previously anticipated and that risks associated with household imbalances have “not diminished.”"
For more information & to read the whole report, click here.
Do you have questions about the local market & how these low mortgage rates can affect you? Contact me with your questions and I'll be happy to help you understand how low mortgage rates can benefit you as a buyer or seller.
Image Source: Greg Michie