Friday, October 17, 2008

Home Prices are Falling but Mortgage Rates Rising!

Garry Marr, of the Financial Post says that home prices across Canada fell for a forth straight month. I think we'll see a continued slowing for six months at the minimum, as home prices fell 3.6% in July and then 5.1% August. Those declines might have made it cheaper for consumers to buy a home but in the past two weeks most of the major banks have jacked up the variable mortgage rate for consumers who float with prime. Prime is now at 4.25% at most banks.
CREA said Wednesday the housing market appears to be stabilizing, the facts right now indicate the real estate market is stabilizing in many markets," said Calvin Lindberg, president of CREA.

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