Mortgage Rate Forecast

December 22, 2009

A release by BCREA for December, 2009:

Home buyers will benefit from a low mortgage rate environment through much of 2010.  The BC Real Estate Association forecasts borrowing costs to rise more quickly during the tail-end of 2010 and through 2011.

“Mortgage rates will inevitably rise from current levels. Today’s low interest rates are the product of a global coordinated effort to mitigate the worldwide economic downturn through fiscal and monetary stimulus”.

Read the full report >

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Bank of Canada expected to hike interest rates in mid-2010

December 9, 2009

December 08, 2009

TORONTO — The Bank of Canada repeated its pledge Tuesday to keep interests rates at historic lows until the middle of next year to stimulate growth and a sense of stability in the midst of a slow economic recovery.

But, economists are calling for rate hikes as much as a full percentage point or more later next year, and say the bank’s commitment to keep its key rates at 0.25 per cent creates a false sense of security in borrowers who have taken on debts larger than they could normally afford.

The C.D. Howe Institute’s 12-member monetary policy council’s median target for the overnight rate was for one per cent in the second half of 2010. Read more

Strong demand carries into late fall

December 6, 2009

VANCOUVER – Home values continued to edge upward in November as demand in the Greater Vancouver housing market remains well above seasonal norms.

Over the last 12 months, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 12.4 per cent to $557,384 from $495,704 in November 2008. This price, however, remains down 1.9 per cent from the most recent high point in the market in May 2008 when the residential benchmark price sat at $568,411. Read more

High sales levels spur rise in home values

December 6, 2009

VANCOUVER – Strong demand has led to a steady rise in Greater Vancouver home prices compared to last year.

Over the last 12 months, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 6.8 per cent to $553,702 from $518,668 in October 2008.

“While home prices have been rising in 2009, they have not eclipsed the peaks reached in early 2008,” Scott Russell, Real Estate Board of Greater Vancouver (REBGV) president said. “We’re coming off several months of unseasonably high sales levels, which has allowed for a gradual increase in home values this year,” Read more

Bank of Canada maintains interest rates

December 6, 2009

The Bank of Canada held its benchmark overnight lending rate steady at 0.25 per cent at its setting on October 20th, 2009. The trend-setting Bank rate, which is set 0.25 percentage points above the overnight lending rate, remains at 0.5 per cent.

The Bank acknowledged that recent indicators point to the start of a global recovery, and that economic and financial developments have turned more favourable than it had previously expected. While recognizing that the Canadian economy is rebounding, it expects the recovery to be weak by historical standards. Read more