Ottawa must really want to see more of a downturn in the Canadian housing market.
This week saw a new limit to CMHC largesse. The latest change limits guarantees on Mortgage Backed Securities which will slightly increase lending costs.
In the financial post Mortgage Brokers and Bankers differ on their opinion of the latest move, some think it’s too much too soon, others think it’s a minor tweak that will have no real effect.
Doug Porter, chief economist with Bank of Montreal, wonders if housing statistics over the last couple of months showing sales and prices rebounding might have spooked the CMHC.
“I think this step is being taken because we have seen some signs in recent weeks that the market is not cooling as much as had been expected,” said Mr. Porter. “All the debate has been whether we will have a soft or hard landing and I would question whether the market had any landing whatsoever.”
Read the full article in the Financial Post.
