Mortgage rates to remain stable: CMHC

Mortgage rates to remain stable: CMHC

Mortgage rates are expected to remain within 25 to 75 basis points of their current level for the remainder of 2009, according to CMHC's second quarter Housing Market Outlook, keeping them "very low in a historical context."

"Movements in mortgage rates are difficult to predict due to volatile economic conditions," the report stated. "Nevertheless, rates are expected to remain steady this year and edge higher in 2010."

Along with mortgage rates, CMHC listed employment, net migration and low birth rate as having key effects on residential construction, and forecast housing starts to decline to 141,900 in 2009 (most notably in Alberta and Saskatchewan) before rebounding to 150,300 in 2010. 

"The decline in housing starts in 2009 can be attributed to several factors, including the current economic climate, increased competition from the existing home market, and the impact of strong house price growth between 2002 and 2007," said CMHC chief economist Bob Dugan. "Housing market activity will begin to strengthen in 2010 as the Canadian economy recovers, bringing housing starts more in line with demographic fundamentals over the forecast period."

2 Comments
  • D. Paul Butt 2009-05-23 2:36:02 AM
    canada really seems to begin or at least end in Halifax.

    As referanced a couple of years ago by the BIBLE of news papers in canada,the globe & mail,the province of welfare known as Newfoundland and Labrador.

    But,we are on the move.With Vale INCO at Long Harbour to spend $2.3 Billion,new offshore projects worth in the $10's of billions and other billion dollar projects to numerous to mention; what's all this doom and gloom.

    For the benefit of the rest of canada we suppose.

    May be we are about to find out that Canada now begins or at least ends in St.John's,NL.

    Nice change we think.

    I hope broker News can shed more light on this story.Maybe you will find no recession here in the east where NL is located you know.For those who do not know where we are - as far east as you can go in the Americas.

    THIS APPEARS TO BE A REFRESHING CHANGE,DON'T YOU THINK!

    Post a reply
  • D. Paul Butt 2009-05-23 4:10:42 AM
    canada really seems to begin or at least end in Halifax.

    As referanced a couple of years ago by the BIBLE of news papers in canada,the globe & mail,the province of welfare known as Newfoundland and Labrador.

    But,we are on the move.With Vale INCO at Long Harbour to spend $2.3 Billion,new offshore projects worth in the $10's of billions and other billion dollar projects to numerous to mention; what's all this doom and gloom.

    For the benefit of the rest of canada we suppose.

    May be we are about to find out that Canada now begins or at least ends in St.John's,NL.

    Nice change we think.

    I hope broker News can shed more light on this story.Maybe you will find no recession here in the east where NL is located you know.For those who do not know where we are - as far east as you can go in the Americas.

    THIS APPEARS TO BE A REFRESHING CHANGE,DON'T YOU THINK!

    Post a reply