Bank of Canada Decided Against Raising Interest Rates
Canada’s economy (GDP) isn’t growing at the predicted rate partially due to the softening of the real estate market. The GDP only grew 1.3% compared to the 2.5% that was predicted. Due to this, the interest rates are not increasing as originally planned. The target for the overnight rate will stay at 1.25 per cent.
Though this doesn’t mean that rates won’t go up before the end of 2018. Many are expecting the economy to rebound in the second half of the year. “I think by the end of the year there will be one more rate increase, probably in the third quarter, but at this point, Q1 looks rougher than what was expected initially.” Barsoum
If you are thinking of purchasing a house, now is a good time.
- Able to purchase before interest rise
- Inventory is up over 60% which means more selection
- Fewer houses are going to multiple offers. Since you are less likely to be in competition it is easier to get an accepted offer with conditions such as home inspection & financing
- Prices are still lower than our peak prices last year so you can buy now at a lower price then you could this time last year
Source: Mortgage Broker News