Go offline with the Player FM app!
Is Inflation Creeping Back Into The Canadian Economy?
Manage episode 365135181 series 2965970
The finance podcast hosted by the team with the lowest Home Equity Loan returns with another episode of Make Money Count! The latest podcast episode centers around the recent inflation reading and its implications for the Canadian housing market.
InflationThe inflation rate came in higher than expected. Driven primarily by increases in shelter costs such as rental rates and mortgage interest. This has created a cyclical effect where inflation causes increased interest rates, leading to higher debt servicing costs and rising rental prices. The conversation also touches on the likelihood of the Bank of Canada increasing interest rates again and the impact on five-year fixed mortgage rates. As the housing market remains resilient with climbing prices and transactions. It is expected that interest rates will stay elevated for a longer duration, prompting consumers to consider fixed-rate mortgages over variable-rate options.
Supply & DemandThe discussion continues around the factors influencing the impact of supply and interest rates on housing prices. The lack of supply is a key reason for the increase in prices. The longer interest rates remain high, the higher the probability of more supply entering the market. The availability of supply will be the determining factor in whether prices go down. If banks change their approach to borrowers who are struggling to meet new payment terms, more properties could hit the market.
Clients who took shorter-term mortgages during COVID and now face higher interest rates may consider selling their properties. The conversation shifts to the influence of the media frenzy on housing prices. It is acknowledged that the media coverage created fear among people, discouraging them from taking action in the market.
The trend of stretching out amortization and moving up the property ladder will change, with some suggesting that people may be stuck in their homes longer, waiting for equity and lower amortization. However, that stability in housing prices has been maintained, and once interest rates drop and costs increase, the market dynamics could return to a similar pattern.
Subscribe for more!
PODCAST:
===============================
Apple - Spotify - iHeart Radio - Podbean
SOCIAL:
===============================
♪ - TikTok - FACEBOOK - TWITTER - Instagram - LinkedIn
Transcript: Is Inflation Creeping Back Into The Canadian Economy - Make Money Count 062
100 episodes
Manage episode 365135181 series 2965970
The finance podcast hosted by the team with the lowest Home Equity Loan returns with another episode of Make Money Count! The latest podcast episode centers around the recent inflation reading and its implications for the Canadian housing market.
InflationThe inflation rate came in higher than expected. Driven primarily by increases in shelter costs such as rental rates and mortgage interest. This has created a cyclical effect where inflation causes increased interest rates, leading to higher debt servicing costs and rising rental prices. The conversation also touches on the likelihood of the Bank of Canada increasing interest rates again and the impact on five-year fixed mortgage rates. As the housing market remains resilient with climbing prices and transactions. It is expected that interest rates will stay elevated for a longer duration, prompting consumers to consider fixed-rate mortgages over variable-rate options.
Supply & DemandThe discussion continues around the factors influencing the impact of supply and interest rates on housing prices. The lack of supply is a key reason for the increase in prices. The longer interest rates remain high, the higher the probability of more supply entering the market. The availability of supply will be the determining factor in whether prices go down. If banks change their approach to borrowers who are struggling to meet new payment terms, more properties could hit the market.
Clients who took shorter-term mortgages during COVID and now face higher interest rates may consider selling their properties. The conversation shifts to the influence of the media frenzy on housing prices. It is acknowledged that the media coverage created fear among people, discouraging them from taking action in the market.
The trend of stretching out amortization and moving up the property ladder will change, with some suggesting that people may be stuck in their homes longer, waiting for equity and lower amortization. However, that stability in housing prices has been maintained, and once interest rates drop and costs increase, the market dynamics could return to a similar pattern.
Subscribe for more!
PODCAST:
===============================
Apple - Spotify - iHeart Radio - Podbean
SOCIAL:
===============================
♪ - TikTok - FACEBOOK - TWITTER - Instagram - LinkedIn
Transcript: Is Inflation Creeping Back Into The Canadian Economy - Make Money Count 062
100 episodes
All episodes
×Welcome to Player FM!
Player FM is scanning the web for high-quality podcasts for you to enjoy right now. It's the best podcast app and works on Android, iPhone, and the web. Signup to sync subscriptions across devices.