BMO chief economist Doug Porter says.,“Our view is that the housing market has not completely digested the latest rising rates as well as the run-up in long-term bond yields, which is being reflected in longer-term mortgage rates,” he told Canadian Mortgage Professional last week.
Indeed, there’s likely to be more pain ahead for homeowners, with current high rates and projected milder activity set to see home prices take a further dip in the months ahead.
“Our view is that combined with some underlying slowdown in the economy, that’s likely to keep the housing market tame for the next six months,” Porter said. “There’s probably another [downturn] in prices nationally, essentially reversing the run-up we saw in the spring and earlier summer. We would expect prices to drop back towards the lows that they hit earlier this year.”
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