BC Real Estate Association has announced its latest Mortgage Rate Forecast today.
With the growth in Mortgages being at the lowest levels in 17 years, it appears that the Mortgage Stress Tets, introduced earlier this year was far too aggressive.
This, together with low Alberta Oil Prices and potential Economic headwinds, such as the closure of the GM Oshawa Plant may have led the Government to rethink their plan to increase rates to quite the same level next year, and the forecast is now calling for only 1 or 2 rate increases next year, which is potentially good news for new borrowers and those on variable rates.
BCREA's Mortgage Rate Forecast December 2018
Midway through 2018, everything seemed to be pointing to sharply higher mortgage rates. The Canadian economy was soaring, the Bank of Canada and its counterpart in the US were resoundingly hawkish and bond yields were testing multi-year highs. However, declining oil prices, the stronger than expected impact of the B20 mortgage...