The BC Real Estate Association has today published its latest Mortgage Rate Forecast.
As I suspected they are forecasting further rises - see the table below.
Risk Factors -:
- Changes to the Mortgage Rules in January 2018.
- Elevated Housing Debt.
- The ongoing performance of the Canadian Economy
All of these factors will all play their part. At the end of the day, the Government cannot risk increasing Mortgage Rates too high, or too quickly as this may have a devastating effect on some households and the knock-on effect this would have on the Real Estate Sector, which is an important part of the Canadian Economy.
The full report is available at http://www.bcrea.bc.ca/docs/economics-forecasts-and-presentations/mortgagerateforecast.pdf
Tel 250 864 1707