Residential Market Commentary - week of October 24, 2016
Oct 24, 2016, 15:20 PM
Of all the predictions, and raw speculation, coming out of the federal government’s latest changes to mortgage rules you can add forecasts for an interest rate cut.
Many market watchers are interpreting the Bank of Canada’s latest Monetary Policy Report, and the related comments from Governor Stephen Poloz, as decidedly “dovish”. Right now there is deemed to be a one-in-five chance that the BoC’s next rate move will be down. That rises to a one-in-four chance when the timeline is extended into the spring of 2017.
The thinking seems to be that the new mortgage rules have sufficiently isolated the housing market – especially the very hot markets – from the spending temptations of lower interest rates. That gives the Bank room for more stimulus to get manufacturing and exports moving again.