Rising Mortgage Rates Weighing on Canada's Housing Market
Dow Jones10-16
1018 ET - The rise in mortgage rates has sent Canada's housing market into reverse, with sales and prices both falling in September, says Capital Economics' Stephen Brown. With the risk mortgage rate rise further prices could fall a bit more in the coming months, though Brown doesn't anticipate the Bank of Canada will lift its policy rate as aggressively as markets are pricing in. Lenders have been forced to pass on higher funding costs to fixed mortgage rates. Yet while home prices may fall near term, Brown says he is more upbeat about the outlook from mid-2027 as mortgage rates drop back next year.
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