Quote:
Originally Posted by tool001
BofC date to review the rates is coming up again. believe jan 20.? i know that economy is not doing so good still? but they are other factors at play here. ie Canadian dollar/exports etc etc.
any ideas as to if they would leave rates alone or up .25 points?
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At this point I think they'll ride it out till June to save face based on their promise to hold rates.
Flaherty has come in to Carney's rescue with threats of shorter amortizations and larger downpayments, so Carney is off the hook temporarily to take care of the housing bubble.
Besides, for us nay-sayers holding off on rate increases until June is a bonus. It means the perfect storm is brewing:
- HST
- rate raises
- Olympic hangover starts after spring surge
There will be a surging in the spring to beat HST, rates rising, and the new amortization/downpayment rules. This last gasp will be the best time to sell (my house is going on the market this month) as it will effectively eat into most future sales and collapse demand for years to come. Then the bubble pops.