Home buyers worried about being pushed out of the market by higher mortgage rates received a little good news this week.With all the turmoil in the world financial markets in the last two weeks, the pressure has been taken off banks to raise interest rates. The longer the turmoil, the more likely the mortgage rates are to fall and the Bank of Canada will be pressured to lower the overnight rate. 180% switch from discussion of a pending rate increase in the fall.
The Bank of Canada has not raised it's overnight rate in 2011, making interest rates among the lowest in Canadian history.
This is a benefit to first-time buyers and anyone who is looking to renew their mortgage because lower rates reduce the cost of borrowing.
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