[ranchlandsselling]

Originally Posted by bizaro86

Why do interest rates have to go up the next 5 years? People have been saying that for 5 years now, and it hasn't been true yet.

Examples: http://forum.calgarypuck.com/showpos...&postcount=290

http://forum.calgarypuck.com/showpos...&postcount=372

http://forum.calgarypuck.com/showpos...&postcount=682

I was pretty much the same, I figured rates would go up a bunch after all the money printing central banks did in 2008/2009. But rates are still wicked low, and the locked in fixed rate mortgage I took in 2008 turned out dramatically worse over the 5 years than the variable choice.

I didn't say they have to go up, I said as they rise. My opinion is they will rise. They already have from spring 2013 low of 2.79% and they've come back down to 3.19%, that's 14% higher than this time last year. In the summer it was 3.59% which was 29% higher than a few months earlier. So saying they won't go up is already wrong. They did and it was fast, happened over a month and then slowly retreated a bit.

It won't be linear, but if the US recovery is real Canada will start to feel the effects and our rates will slowly climb. There will be ups and downs, but in 5 years I'd put my bets on at least a 4.0% interest rate which is 43% higher than the low and 25% higher than today's best rates.