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Originally Posted by chemgear
Interest rate forecasts from the various banks:
http://www.canadianmortgagetrends.co...rtgage_trends/
Estimates average ~ 3.0% increase in the span of 19 months. Or roughly 25-30% increase in monthly mortgages payments for the "average person."
It's okay though, housing prices cannot possibly go down.  |
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On the fixed-rate side, bond yields are expected to rise 1.19% in the same timeframe, according to bank estimates. (Bond yields drive fixed mortgage rates). Based on a typical 120 basis point spread above yields, this suggests deep-discounted 5-year fixed rates could rise to around 5.36% by year-end 2011.
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You're comparing the overnight rate to the bond yield, and then what? Assuming the average person has a floating mortgage?
So the year end 2011 5-year rate is expected to be 5.36%? OH NOSSEEE!! I bought my place and was paying 5.79% in 07. Managed to get down to 3.79% until 2015. I'm a little worried about 2015, but not about 5.36% in 2011. It's more than I'm paying now. But certainly nothing to get all worked up about and 2015 is too far out to call.