Whether house prices continue to go up or not, they just got more expensive – The Bank of Canada is set to raise interest rates for the first time in more than a year.
After tomorrow, bank officials make their next decision on Sept. 5, followed by Oct. 16 and Dec. 4. In its last statement in May, the central bank said â€œsome increase in the target for the overnight rate may be required in the near term to bring inflation back to the target”.
Once the current batch of locked-in preapproved rates have worked their way through the demand side of our housing market we’ll see what effect this rate increase will have.
Theres a related story today in the Tyee:
Two-in-three Canadians think houses in their neighbourhood are overpriced, according to a poll released today by Angus Reid Strategies. Almost three-in-four homeowners say they could not afford a down payment on their house as it’s presently valued. And the vast majority of Canadians rank home ownership as a top priority, but are pessimistic about their chances of buying a house in the current market.