Tag Archives: interest rates

The unintended victims of higher interest rates

Who does higher interest rates hurt the most? The obvious answer is people who have variable rate mortgages. But there’s a group of people that are even more at risk, and are hurting more from the impact of higher interest rates. They are renters. Why renters? Because as the cost to borrow becomes more expensive, would-be buyers who… Read More »

Will interest rates move higher next year?

Yes, rates will probably be higher in 2022. But not as much as people might think. Inflation is stubbornly high. We’ve been above the Bank of Canada’s target rate of 2% since March, and the rising cost of living doesn’t seem to be even slowing down.   This prompted the top economist at Scotiabank, Derek Holt to predict… Read More »

Strong Canadian Housing Market 2014

The Canadian housing market continues to defy gravity! 🙂 According to CREA the average home price in May increased to $416,584, a 7.1% jump from a year ago. The number of homes sold also increased by 5.9% month over month, which is the largest gain in several years. A lot of people feel concerned that this kind of growth is unsustainable. They… Read More »

Adapting to Prolonged Low Interest Rates

Last Fall I made some bold predictions that low interest rates are staying until 2016, which will keep the housing market stable. I also suggested that investing in parts manufacturers like Magna International would be a profitable venture due to the consumer’s love for cars 😀 Fast forward to today and it looks like events are unfolding thus… Read More »

Weekend News: Low Interest Rates are Staying

Real Estate Sales Strong Despite Higher Mortgage Rates Yesterday we just saw the yield on the 10 year US treasury climb to 2.99%, a multi-year high, and mortgage rates are starting to creep up. But houses are still being sold with unimpeded fervor in many parts of Canada 😎 The number of homes sold in Vancouver was 52%… Read More »