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Because there's legitimate concerns about high inflation generally, and in particular housing affordability (the latter especially in places like Canada that ap
by cmrdporcupine 3y ago
Because there's legitimate concerns about high inflation generally, and in particular housing affordability (the latter especially in places like Canada that appear to be in a drastic real estate bubble).
If the economy doesn't slow, we'll see more rate hikes.
- data-ottawa 3y agoI do know of people who decided they couldn't get into the housing market (here in Canada) and have been drawing down their down payment savings to spend. It's probably a very small portion of this spending increases overall, but interesting to see. Rates here seem to have stabilized for the time being, and house sales are way down, so I think now we're going to finally see housing price declines this spring season. The next 2-3 years will get rough as fixed mortgages renew, with my own mortgage payment expected to increase by nearly 50% at renewal, and 70% of the total payment will go to the increased interest payments alone. The total cost of my mortgage at today's rates would be triple what I signed on for! I don't see how this won't wreak havoc on the average families finances.