The lowering of Canada's interest rate by 0.5% last week is good news to home owners. CBC News reported on March 05, 2008: "Interest rate cut good news for home buyers, association says"
The Bank of Canada's decision to cut interest rates Tuesday is unlikely to trigger a flurry of home buying in Vancouver, although more potential buyers will be looking, the B.C. Real Estate Association says.
The association's chief economist, Cameron Muir, said he predicts the bank will keep cutting interest rates in the months ahead to further stimulate the economy.
"We will see that five-year posted rate start to edge down as worries around the financial markets here in Canada start, too," Muir said Tuesday.
"Anyone that is either purchasing a home now and taking out a mortgage or renewing their mortgage coming up in the next few months, it's probably good news for them to see a downward pressure on interest rates here in Canada," he said. Read the full report here.
The Fed in the USA is dropping interest rates faster than we are!
This is good news, though my ING Direct account's interest rate would beg to disagree!