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Originally Posted by GGG
Not really, as mortgage serving costs is what is measured. So a drop in interest rates benefits every house that comes up for renewal regardless of it changes hands or not. Purchase price only affects homes bought or sold. In addition mortgage servicing cost on purchases should be relatively constant in the absense of supply or demand changes.
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The mortgage component of inflation is going to skyrocket in 2024 and 2025 as almost half of the mortgages in Canada, 2.2 million mortgages, come up for renewal. Many of those are super low rate, pandemic mortgages and the new interest rates will be two or three times higher this renewal.