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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Interest rates will be low for a couple of years. During that time inflation will be driven up. The feds won't raise interest rates until the economy begins to heat up, which will be a few years from now. There could definitely be some trouble in five years when these mortgages are you and interest rates are higher. How exposed people are well depend on where the house is and how much it was leveraged.