Scotiabank senior economist says, “Rates will rise gradually, reducing sticker shock. But the lowest short term rates of the last several decades is over. It’s back to market-determined rates from here”…
(Source: The National Post)
Where are interest rates going? For home buyers, the question is obviously relevant. After all, the higher the interest rate, the less house or condo the buyer will get for any given amount of mortgage payment.
Interest rates remain near historic lows. The overnight rate set by the Bank of Canada for loans to top up bank reserves is 25 basis points – that’s a fourth of 1%. The only way for short rates to go is up and, in fact, that is precisely what forecasters say is going to happen.
Read the full article “Happy times for interest rates can’t last forever” in the National Post (Jan 06, 2010).