Consumers must be getting tired of hearing the experts cry wolf about rising interest rates and a housing crash.
Rates haven’t moved much if at all for most terms, if anything they’ve fallen and stayed put. Mortgages still hover around 3% for anyone willing to lock in for five years and consumers have been doing that more than ever — some even opting for a 10-year commitment.
As for the crash, is it happening? Sales have dropped sharply in some markets, Vancouver notably. But prices have remained relatively firm with the 25% drop predicted by many still not materializing. But even the real estate industry says price gains will be limited.
Not surprisingly, the real estate industry blames the government for the slowdown because of tough new mortgage rules that made it harder to borrow. Meanwhile, Finance Minister Jim Flaherty seemed more than content to create a so-called soft landing for real estate.
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