An interesting read and video below. It's a good discussion around variable rate mortgages and the impact that interest rate increases might have on the housing market.
It's a good time to be cautious and not get caught up in the euphoria of the current market, especially in hot housing markets like the Fraser Valley. The prices are staggering and making rash emotional choices, using a high level of mortgage debt can have life-altering implications, if things go south.
While we've had threats of rising interest rates several times since the great recession of 2008-2009, they've quickly been reversed. A lot of people have now become accustomed to historically low mortgage rates and don't believe that they will ever meaningfully rise. However, what is different now is that inflation rates are at multi-decade highs and the central bank likely has to follow through with rate increases to control inflation. This could change the dynamics of the Fraser Valley housing market in 2022.
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