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Agents fear long-term impact of rate cut

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Real Estate Professional | 17 Jul 2015, 11:30 AM Agree 0
The Bank of Canada’s announcement to cut the interest rate 25 basis points to 0.5 per cent has some agents worry about the impact the housing market will feel once rates eventually rise.
  • djd | 17 Jul 2015, 01:55 PM Agree 0
    What am I missing here. Why is the Bank of Canada being held solely responsible for the woes of the residential market. They have bigger issues to deal with. As a prudent underwriter, why isn't CMHC stepping up by throttling back their mortgage insurance coverage in those markets where concerns are growing? What about the Canadian banks? Why are they not also exercising their fiduciary responsibilities?

    I have lived through a number of residential housing cycles over the past 40 years. What's unfortunate is that when it all comes crashing down, the only line of defense is ultimately the bank shareholders and the taxpayer in the case of CMHC.

    This is setting up to be a particularly nasty one. Brace for impact!
  • WP | 18 Jul 2015, 12:39 PM Agree 0
    I agree...more rate cuts are likely to result in a 'bubbling effect' ! However, the BOC has bigger problems right now with poor/falling economic growth and real estate (for now) is the least of their concerns, though it will be when the music stops!
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