pope, since you asked, my 2.00c:Loonie likely won't go near parity now.I suspect that we'll drop to around 85-88 by the end of the year.This'll also happen in synch with the unexpected bounce in the USD index (that started about 1 month ago, even though you'd never guess from all the buck-is-toast articles). USD index could reach 90 by year end. That's only medium term, though.Longterm the buck-is-indeed-toast and the loonie may reach parity. Just not in the next 6 months.

craigpbbrett, be careful trying to bring facts into a real estate discussion about BOC rates.Lots of people will try confuse the issue with blather about currency strength, controlling the markets, job losses, blah blah blah even though their mandate to control inflation is front & center.

“Even men who were engaged in organizing debt-serf cultivations and debt-serf industrialism in the American cotton districts, in the old rubber plantations, and in the factories of India, China, and South Italy, appeared as generous supporters of and subscribers to the sacred cause of individual liberty” -H.G. Wells, The Shape of Things to Come

Depends on what you mean by risk. Bond rates are up to match, so I don't think it is default risk, but rather inflation risk.I'm no expert, but the banks raising mortgage rates points to default risk more than anything else I think. The BOC raising rates is one thing they do to slow inflation, but they don't directly dictate what the big 5 banks do.

this rate up is really bad for first time buyers.but there is a hint I think the best some one can do.go for flex value rate always .75% less than prime rate.base is 6.00% now so that will be 5.25% is that good deal.and there is always 1.00% or 1.5% discount when you realize the banks about competition.I recomend if the buyer can save some bites for him self, finincial institutions mostly are rich and make millions or billions.try not to let them take your bite,buyers always have had hard time to pay mortgage,utilities,mintainance,and property tax,and income tax.when ever they feel some profit these crocodiles bite them sorry but can't change language for institutions,taxes,icbc,hydro and management they run a cycle.for i.e.government reduce tax for first time buyer thats around 5000.banks jump twice since thenmanagement looking at appreciation bring some projects.hydro… Read more »

" Do you know anyone that can't afford an extra $400 a year? "Well, maybe people who recently bought a GV SFH benchmark can't.You are missing the point. This is at the margin. Another $400? And another $400. And another $400. You could keep saying that as rates rise to 18%.It will hurt given our 65% of pre-tax income or whatever our affordability is (by far the worst in North America).

Yes indeed it’s a puny increase. However let’s not forget it took approximately 15 rate cuts before the economy got jump started. And when there is finally an admission that inflation is underreported it will take many consecutive increases to tame the runaway inflation.At the early stages of the fight against inflation, the small rate hikes will actually add to inflation as interest costs are merely “inputs” and while the economy hums along the cost will be passed on to the consumers. The next stage:RE has crashed, (and not just because of the economy), inflation is still high, interest rates are still on the rise, and unemployment is rising.Pastrick, Muir, and et al, will say that nobody saw this economic shock coming.

Right. This one only adds up to about $400 per year. And the one before that? Or how about the predicted future rate increases – you see where this is going?I agree that the 'death of a thousand cuts' isn't likely to kill this market quickly – there's too little sense in it to be swayed to little bits of reality seeping in.Overshoot on the down is likely as thats the way this market seems to work. Just make sure you don't have to sell at that point, and I sure wouldn't be buying anything as an 'investment' in this town right now.

Looks like some good info which is nearly lost on a website that was made by a 12 year old on a commodore 64. Hey, that was bleeding edge web design circa 1996. For some great fun check out wayback machine. They have some stuff "captured" from around then. The McDonalds Corporate webpage looked no better.

I ran the GV detached benchmark again with the new rates. Didn't jot it down, but added $30 something dollars, or about $400 a year. Not a lot, but still a fair chunk of change given the already very very tight situation.

Nah, then we'd be neighbours with Chipman.Was there something in particular you had in mind on that web site VRC?Looks like some good info which is nearly lost on a website that was made by a 12 year old on a commodore 64.

Your most reverend Excellency pope, for some reason the “link description” shows up a the date?

Debated this earlier(offline-remember the offline world?). Would the rise in rates offset any reduction in prices caused by the rise in rates. My thoughts:the reduction in rates post 911 at first caused a corresponding(balanced?) increase in home prices. Then prices kept rising despite rate increases. So I would conclude the elasticity will allow prices to overshoot(significantly) on the downside. Just as they overshot on the way up.