Quote:
Originally Posted by Cappy
What happens when interest rates rise?
Are enough people locking-in to prevent the cost increase?
I own a condo and have no intention of leaving downtown for the burbs so this market really doesnt affect me. But i have considered taking out a small mortgage on my place to fund some reno's.
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There is fairly mainstream view that interest rates will rise. We locked in cheap on a renewal in 2019, but I am really thinking we won't get low 2% for a long time.
If the recovery takes off inflation will as well. Anecdotally you are seeing it on almost all material items, low inventory and high demand. Just tried to get my kid a bike, and inventory in early March is decemated. TV inventory was wiped out this winter. Prices can increase a lot and people will still line up to pay.
If your in a good spot to move, then great, but I am very leery in a few years you can see rates much higher than they are now. Which will cause some people who over leveraged problems on 5 year renewals.