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Mortgage rate hike good for business?

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Real Estate Professional | 10 Dec 2014, 10:47 AM Agree 0
The prediction of a rate hike in 2015 is likely to push first-time homebuyers into the market, according to a new report, as Millennial buyers aim to secure a low rate before the Bank of Canada ends its one per cent run.
  • Eddie | 10 Dec 2014, 02:59 PM Agree 0
    The millennials might rush into the market if they sense an imminent increase in rates coming but that doesn't mean that the inventory will increase. In fact, with the current high prices are preventing property owners from selling to move into larger or newer properties. They prefer to stay put and renovate. Therefore, if anything inventories will be depleted and prices will rise, followed by inability of millennials and new comers from buying. I think the ReMax crystal ball is a little murky with wishful thinking. The
  • | 10 Dec 2014, 04:06 PM Agree 0
    I do not know how the real estate market would be more active with first time buyers if Mortgage Interest Rates go up next year. In my own point of view, the lack of inventory and therefore the high price of Real Estate, as the tremendous difficulties to obtain mortgages due to the extreme and so many demands from financial institutions, will stall if not stop the existing inventory turn over, which actually will probably have a "flat growth" as well as prices won't go up as we have been experiencing for the last 10 years.
  • Simple Stuff | 11 Dec 2014, 02:20 PM Agree 0
    All nonsense. Only one reality. All that money that has been printed over the last many months will raise the price of everything (not real estate, that is already way up as result). And, at the same time, the Chinese will be then tired of their money earning so little. You know what that means? Interest rates will go back to where they are supposed to be (based on decades of reality) or worse. And you know what all you people continue to hide (or simply don't understand)? The best time to buy real estate is when rates are high. The higher the better because that is when, hello, the price of real estate is at the low end of the cycle.
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