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Recovery Points To Summer Increase In Interest Rates. How Will This Affect The Real Estate Market In Wasaga Beach?

The Globe And Mail believes ” Canadians should be preparing for higher interest rates sooner rather than later.” We can expect the real estate market in Wasaga Beach to be busy.

In an article on Friday Kevin Carmichael commented that “With the North American economy growing significantly faster than expected at the end of 2009, and with mounting evidence that Canada is pulling clear of recession, economists are increasingly of the view that central bank Governor Mark Carney will pull the trigger on an interest-rate hike this summer, rather than wait until later in the year.”

What does this mean for the real estate market here in Wasaga Beach?

Simply put lots of closings.

Buyers will want to purchase and tie into a low fixed rate before the expected increases. The belief that interest rayes will rise is enough to ensure a busy few months.

Add in the HST factor and again buyers will want to purchase before having to pay this extra tax on the transaction.

Although an increase in rates does not seem like good news it does mean that the Canadian economy is recovering and this can only be good for everyone. “Statistics Canada said gross domestic product expanded for the third consecutive month in November, and that growth in October and September was stronger than initially stated.”

Canada is puling clear of the recession

BUT it was only 2 days earlier that The Globe And Mail published an article entitled :

“Interest rate hike this summer?Don’t count on it. For the Bank of Canada to raise rates before the middle part of 2011 would be totally inconsistent with its current forecast”

What does this all mean when even the “experts” cannot agree?

We do know that home owners are enjoying rock-bottom mortgage rates.

To guarantee this now is the time to buy or refinance.

Related posts:

1. Mortgage Interest Rates Are Going Up & Down
2. How Low Mortgage Rates Help The Real Estate Market In Wasaga Beach
3. Bank of Canada Leaves Interest Rate Unchanged
4. Mortgage Rates Today
5. The Days Of Rock Bottom Mortgage Rates Could Be Numbered

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This entry was posted on Sunday, January 31st, 2010 at 6:35 am and is filed under Financing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

1. The Globe & Mail On Saturday: “Want a home in the Triangle? Start angling now. Supplies down, demand strong as builders plan to bring more projects to market” | Wasaga Beach Real Estate-Wasaga Beach Homes For Sale-Wasaga Beach News said at February 2nd, 2010 at 6:24 am

   [...] this may all change later in the year. He cites the HST but we can add to that the likelihood of higher mortgage rates.His observations are based common sense “indicators: measurable demand, available supply, and [...]

2. The Days Of Rock Bottom Mortgage Rates Could Be Numbered | Wasaga Beach Real Estate-Wasaga Beach Homes For Sale-Wasaga Beach News said at March 26th, 2010 at 1:57 pm

   [...] Act now to buy or re finance and lock in to the historically low interest rates being offered. [...]

3. Mortgage Interest Rates Are Going Up & Down | Wasaga Beach Real Estate-Wasaga Beach Homes For Sale-Wasaga Beach News said at August 15th, 2010 at 10:11 am

   [...] However variable rates are rising after the Central Bank raised the prime lending rate another basis point to 0.75% in July.This was the second increase this year and had been expected. [...]

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