Why are mortgage rates rising?

Southseacompany linked to this article: Why are Canadian mortgage rates rising?

Mortgage rates have inched up slightly lately for apparently no real reason, what’s with that?

Canadian mortgage rates moved higher again last week but it wasn’t because of new economic data or rising bond yields. Instead, one large lender raised rates and everyone followed, repeating a cycle that we have seen several times lately.

Read the full article here for the full analysis.

Sort by:   newest | oldest | most voted
Jimmy
Guest
Jimmy

Better question, why do house prices always shoot higher here when mortgage rates start going up?

78-81… rates double to 20%, prices triple
86-90… rates go up 500 points, prices double
03-07… rates go up 300 basis points, prices double

WTF is up with that?

space889
Guest
space889

@VanRant – I think all those ultra luxury retailers & car dealers, and many tradespeople and construction companies would disagree with your assessment about HAM. I’m not aware of many regular joe immigrants, live-in nannies, etc buying $100K+ cars, $1000+ bags, or hire trades people charge $75/$100+/hr

space889
Guest
space889

@Jimmy – Maybe cuz economy is doing better and inflation was high? It is interesting evidence against the conventional thinking that higher interest rate = lower housing prices.

It would be interesting how it places out this time since our current rate is slow, and almost no one, not even the bulls, are expecting a doubling of house prices….maybe, this is the start of one of those “things can go irrational and crazier for longer than anyone think is possible” episode.

space889
Guest
space889

@squeak – Hi, really appreciate all the hard work you are putting into the healthcare system, which unfortunately is no longer being run for the benefits of patients & front line workers.

However, I can’t help but give a jab here….

at least aren’t you glad this lady who’s making $11K/month on AirBnB while likely under reporting the income, and skirting various condo bylaws (eg. move in/out cost, no short term rentals, etc) isn’t a HAM but a local who is helping to build the city and community we all love, and introduce tourists to our great city? Rather than leaving housing all empty and dark? 😛

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

THE GREAT RATE SPIKE IS HERE GUYZ!!

bestplaceonearth
Guest
bestplaceonearth

by the time Spring arrives here in a few months, they will start another rate war! what else is new?

Best place on meth
Member
Best place on meth

The AirBnB claim sounds like bullshit, more douchy, Vancouver style bragging.

11K a month is $370 a night, every single night.

I can only find one 2 bedroom listed that comes even close to that price and surprise, it’s available all of next week and the week after that.

Yunak
Guest
Yunak

“Across the way, on Chancellor Blvd. near UBC, realtor Andrew Hasman sold a home two weeks ago for $5.3 million — nearly $600,000 over asking. The sale followed a six-party bidding war won by a 22-year-old university grad whose parents live in China.”

Until such shit-doing gets exterminated there is no way for this society to move forward, things will just become worse and more sick. Nobody likes being treated and feel like shit in the own country therefore revolutions and other kind of “events”.

Read more:

http://www.vancouversun.com/business/barbara+yaffe+time+government+intervention+real+estate+market/11541248/story.html#ixzz3sX3DGuOM

patriotz
Member
@1: “78-81… rates double to 20%, prices triple” 1. Debt/income far lower than today. Rising rates had less impact. 2. End of NDP government Dec 75, 78 was bottom of a bear market. 3. Double digit wage inflation, highest ever. 4. Lagging effect of rate rises. Major bust and recession began in 81. “86-90… rates go up 500 points, prices double” 1. Mortgage rates didn’t go up 500 points, just 80 points from start of 86 to end of 90. 2. Coming out of major bust and recession. 3. Lagging effect of rate rises. Bear market and recession in 91. “03-07… rates go up 300 basis points, prices double” 1. Mortgage rates didn’t go up 300 points, just 50 points from start of 03 to end of 06. 2. End of NDP government in 2001 and end of dot-com recession.… Read more »
VanRant
Guest
VanRant
Chinese passports both real and fake were shipped in bulk to the mainland, where professional forgers would doctor them to make it look like their owners had been present in Canada when they had actually been in China. Wang would set up his clients in fake jobs at his firms, printing business cards for them and issuing pay slips – adding insult to injury, their fake salaries were so low his wealthy clients were able to file tax returns that allowed them to claim from Canadian coffers tax benefits intended for the working poor. That anyone should immigrate to Canada while regarding living there as a burdensome task to be endured or avoided might sound weird, but the concept is so common among some Chinese immigrant circles that there is a word for it: yiminjian, or “immigration jail”. The term… Read more »
Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

@10

how do you combat that level of fraud? you can’t. start learning mandarin.

Best place on meth
Member
Best place on meth

The way you combat it is by an outright ban on immigrants from China.

Yunak
Guest
Yunak

@10

Well, yet another cultural and social collision of two entirely different models. It is becoming more clear over time why people from two different cultures, societies, political systems will have hard time understanding and accepting each other with their different stances toward same things. For example western culture where lie and fraud are considered as bad and wrong and China where the same is a virtue, achievement and preferable way of getting things efficiently and successfully done. It is not surprise that many recruiting companies and businesses have huge concerns over candidates of Chinese professional and educational backgrounds.

“Very different definitions of what constitutes ethical and honest behavior between the Chinese and the Western world.”

https://thelinguafranca.wordpress.com/2008/03/25/do-the-chinese-lie-that-depends/

Jimmy
Guest
Jimmy

@9 I get over 400 points up from your link between Mar87-May90 (as it looks like prices here almost doubled in those 3 years).

Freaky, because if you think about it’s quite similar to start of ‘87:
-1 year past oil bust
-prairie folks flooding in
-zero vacancy rates
-peak millenials turning age 27, just like boomers were in ‘87

However, I don’t think we get 400 points of mtg rates over the next 3 years, but possible if we get some inflation.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

@12

political suicide.

Laibach
Member
Laibach

@15

Why? Rather progressive, smart and patriotic move.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

@16

in my opinion it’s not. all the chinese canadians, sinophiles (a group that is often underestimated), far left will be against it. that’s a significant portion of the population. maybe i’m wrong. we’d have to wait for an insights west poll on it to get a better idea.

Yunak
Guest
Yunak

I guess the next step is exodus to suburbans in order to rent homes closer to center and monetize on this frenzy. Perhaps a lots of sublets will be happening, renters renting, etc… This is what you get when everyone in city without serious economy rely on RE to take its piece of cake and make a buck. Sad and tragic what this society became due to RE craziness…

http://blogs.theprovince.com/2015/11/25/thousands-of-beautiful-suites-for-rent-in-vancouver-but-only-if-you-dont-intend-to-stay/

StupidityCheck
Guest
StupidityCheck

@1:

Affordability was very good in those previous periods. Today’s market will collapse if there’s a significant increase in rates.

http://vancouverhousingblog.com/?attachment_id=875

Oracle
Guest
Oracle

So when do you guys think the Metro Vancouver’s White population will fall below 33%?

That is when the real changes will come IMO.

That is when ethnic parties will have a real chance of forming municipal governments. Then you will see real change.

Oracle
Guest
Oracle

Stupidity:

Todays market would collapse if:

1) Residential Real estate can be only bought by Canadian Citizens.

or

2) All mortgage applications obtain income verification directly from CRA and not from the buyer/mortgage broker.

Oracle
Guest
Oracle

Just don’t be the one paying the bills when this crashes….

Oracle
Guest
Oracle

Bull Bull Bull:

I would vote for a party that restricts immigration to 10,000 per country per year (both temp/perm). Still could get 250,000 here.

That would be better for multiculturalism.,,rather than having India, China, and the Philippines setting up shop here.

space889
Guest
space889

@Yunak – I bet we get even worse views of your cherished Western values when we only concentrate on the actions of the most despicable 0.011% of the population like Cliff Olson, Robert Pickton, Paul Bernado, Conrad Black, etc. By comparison, Chinese culture would look absolutely advanced and pristine.

Actually, we already get examples of the 0.01% scums of Canada on this board…

space889
Guest
space889

@Oracle – I get a feeling that it will be BPOM and Yunka & Vangrl & et al who will end up footing the bills…..hahahaah…

wpDiscuz