Rates Up, Market Down, Time To Buy

The central bank bumped up the policy rate a quarter point for the third time in about 3 months today (sept. 8th), this time taking the overnight rate to one per cent. Most of the major banks and other lenders announced they would hike their prime rate a quarter point to three per cent. Payments on your variable rate mortgages and lines of credits will go up as the result of this hike in rates.

This hike in borrowing costs is likely to further soften the housing market, but a major think tank says the slowdown in recent months won't produce a "freefall" in demand. Canada's housing market may stall in the coming months but not tumble anywhere close to what occurred in the United States during the recent recession, according to a new report from the Conference Board of Canada.

It will be buyers' market for a while folks. Get out there and get a deal.