Happy Monday Morning! The Canadian economy grew at an annualized pace of 3.1% in the first quarter, surprising to the upside and trumping the Bank of Canada’s growth forecasts. Four hundred basis points and the economy still hasn't rolled over. This is prompting calls for the Bank of Canada to move off the sidelines and get back to raising rates once again. Here’s the outspoken chief economist of ScotiaBank, Derek Holt.
Question: If surging interest rates are killing new construction, how are they not killing the rest of the real estate market? Few people are buying all cash either way and as such need to finance at today’s high rates.
Shit show indeed! I still can't believe there are people out there on variable mortgages that could have been paying mostly principle to all interest in over a year and the banks aren't obligated to refinance, can just gobble up the interest payments. By the time they hit the trigger point I suspect it's too late.
Sacrificial Lambs
‘Human QE’ hilarious terminology
Question: If surging interest rates are killing new construction, how are they not killing the rest of the real estate market? Few people are buying all cash either way and as such need to finance at today’s high rates.
Shit show indeed! I still can't believe there are people out there on variable mortgages that could have been paying mostly principle to all interest in over a year and the banks aren't obligated to refinance, can just gobble up the interest payments. By the time they hit the trigger point I suspect it's too late.