Interest rate warnings drove homeowners to lock in mortgages
Two prominent voices made the case on Tuesday that Canada’s housing market is currently undergoing a soft landing, and that a “sustainable” path is around the corner.
According to Bank of Canada Governor Mark Carney, the mortgage regulations implemented earlier this year, combined with a tightening from Canada's central bank have significantly cooled the Canadian housing market. Carney believes the changes are pointing to a more sustainable Canadian housing market in the future, and he isn't the only one. His optimism is shared by Adrienne Warren, Scotiabank's senior economist who stated, "Canada's housing market so far appears to have acheived a soft landing, with cooler but fairly steady sales and pricing through the fall."
Another encouraging factor in the housing market debate is the way Canadians have dealt with the repeated warnings that interest rates could rise. This year, the share of fixed rate mortgages has doubled to 90% - evidence that more Canadians are locking into a fixed rate mortgage to take advantage of today's record low mortgage rates.