Quote:
Originally Posted by V
I haven't tracked the BoC rate changes over the last year, but have they been that out of line with the Fed? The expectations for the Fed are 75bps in November and 50bps in December. I'm surprised BoC wouldn't try to keep pace with them.
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The Fed probably has more room to increase rates without killing mortgagees, with just 10% of mortgages in the US being ARMs and the balance being mostly 25 year mortgages. In Canada, 32.5% of mortgages are variable and the balance are mostly 5 year mortgages... and with CMHC on the hook if they default.