Housing heats ups along with summer temperatures

Summer is typically a slow time for the Canadian housing market, but there are no signs of it slowing down this summer. The market’s strength keeps taking economists by surprise, fuelled by Canadians’ growing appetite for home ownership.
Conditions are ripe in the United States for interest rate increases, and Canadians should take notice. The US is seeing faster than expected economic growth, and unemployment is at its lowest level in 6 years. This could trigger inflation increases, and the US Federal Reserve may respond by increasing interest rates to keep inflation in check.
“We are on a path that says low for long and we have no plans to raise interest rates anytime soon, yet as the data keeps telling us, we ought to be raising rates,” says Charles Plosser of the Federal Reserve states. “We may lose control in the financial markets where we find ourselves later on having to raise rates faster and higher than we otherwise would like to because we are so far behind that the markets get ahead of us.”
Historically, our interest rates usually follow the lead of the US.
If you want to lock in our historically low interest rates on a pre-approved mortgage before they go up, contact us today.