Tuesday, June 1, 2010

What is happening to the interest rates?

There is talk that the interest rates are going up. It seems that Canada is performing much better than the “talking heads” predicted. Gossip has it that now the Bank of Canada wants to slow this growth by raising the interest rates. A large part of the growth is due to the housing sector. Resale’s are up. New construction starts are up. Some of the “talking heads” are predicting a slow down in the housing over the next few months. What are we to believe? The “talking heads” are not talking about Ontario’s HST costs and how it will affect the housing sector. Buyers are being left in a very difficult position. It seems that every time we read the paper, we listen to the “talking heads” on TV or we open a utility bill – we are being told of or experiencing an increase in our basic living costs. Bottom line, we still have a very affordable housing market in London and the interest rates are as low as we have seen in many years even if they go up a bit – remember 18% and 20%. We all lived through the “GST” scare. We live in one of the greatest countries in the world and there is a “cost” to having that privilege. Nothing is free – every time the government gives us something free somebody pays for it – that somebody is you and me. Have a great day! Everyday is a gift – ride it like you stole it.

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