Interest Rates Expected to Remain Low
If you’ve been house hunting all around Oakville frantically trying to find your perfect luxury home before interest rates inevitably rise, you can breathe a little easier today.
If you’ve been house hunting all around Oakville frantically trying to find your perfect luxury home before interest rates inevitably rise, you can breathe a little easier today. According to the PBO, or Canada’s parliamentary budget office, interest rates are expected to hold steady all the way through early 2015. This may come as a surprise to many, as interest rates were initially expected to rise as early as this winter or spring, but due to several factors the Bank of Canada is not looking to throw a wrench into the currently stable housing market within Canada or the Oakville real estate market..
With interest rates already at historic lows, many analysts expected that these rates couldn’t be sustained for long and that it was only a matter of time before the BOC rose it’s policy interest rates above the 1% marker. Although, this seemed like a likely scenario, it doesn’t appear to be the case looking at Canada’s economic forecast over the next couple of years.
Although the PBO (parliamentary budget office) still forecast an almost 2% economic growth this year, they have cut their forecasts for 2013 and 2014 respectively. It believes that Canada’s gross domestic product will increase slower next year at 1.5%, which is down from the earlier 1.6% and it has also cut it’s 2014 forecast by 0.2%, down to 2% from the earlier 2.2% forecast. The PBO believes that this softening of short term growth, will force the economy below its potential and also increase the countries unemployment rate at the same time. Although, the fiscal outlook over the next few years is looking stable, with the Federal government on schedule to run a budget surplus as early as 2015, overall economic pressures from within Canada and worldwide are expected to keep interest rates low.
So what does this mean for the average home buying looking for luxury real estate in Oakville? Well, it means you have more time to find that perfect home, while still taking advantage of lower interet rates. In fact, what better time of year to buy your dream home than now? With interest rates remaining low and the frenzy of the spring and summer buying booms behind us, now is the time to find that perfect price on your slice of paradise.
The Goodale Miller Team is based in Oakville, Ontario, specializing in Oakville luxury homes for sale, is Canada’s #1 Century 21 team for 8 years running.
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