Quote:
Originally Posted by peter12
Good post, but I personally don't think we will ever see mortgage rates start to go back up. Everyone has too much invested in the housing market to see it cooled to any degree. Even marginal changes like the BC Spec/Foreign Buyer Tax cooled the market to such a degree that it halved the province's annual economic growth.
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So the young family should just throw caution to the wind and take on a half million dollar debt that they can't possibly afford to maintain unless the interest rates stay the way they are? And they won't go back to historical norms....ever? This basically strips the BoC of their power to regulate the economy.
The fact that our economy is dependent on out of control housing prices, foreign investment, free borrowing, etc... is ridiculous. What a mess.
The whole system also horribly favors high income earners and children of the rich. Perhaps the median family in Calgary can afford the median house, but the wag gap is growing substantially. What about the social worker earning $20/hr? What do they afford?