Residential Market Commentary - week of December 12, 2016
Dec 12, 2016, 15:09 PM
The more things change the more they stay the same. That appears to be the way it is for Canada’s mortgage business. All of the new, federal rules are in place, the new rates have been set, and the Bank of Canada remains on the sidelines.
The central bank has, once again, decided to hold its trend-setting overnight rate at 0.5% citing the risk of a slowdown in the economy. Of course, The Bank, is making an oblique reference to the election results in the U.S., and is waiting to see how that situation develops.
We will get a better sense of that later this week when the U.S. Federal Reserve announces its latest policy rate decision. Markets have already gone “all in” with a 100% expectation for an increase. But it would not be a surprise if the Fed waits until after the inauguration before making any moves.