OUR BIG BANKS ARE FORECASTING RATES TO HOLD THROUGH SECOND QUARTER OF 2012

Contrary to what was believed just few weeks ago about an interest rate hike, the major banks, including the Bank of Montreal (BMO), Scotiabank, TD Canada Trust and Royal Bank (RBC) are now forecasting that the rate will hold trough to, at least, the second quarter (Q2) of 2012!

Most economists across Canada do not expect rates to drop, just to hold. For the foreseeable future, the present status quo will likely hold.

Same for the Canadian Real estate Association, who predicted a decline in sales, is now forecasting an increase in the overall sales in 2011: a 1% increase from a year ago. In a reply to CREA, Douglas Porter, from BMO Capital Markets, wrote that the Canadian housing remains robust, mainly because of low interest rates and solid job growth.

Economists at BMO are noting that the Canadian housing market is showing resilience against the force of our global economic crisis! The recent financial market turmoil does not seem to affect the strength of our exceptionally low borrowing costs that drive up housing sales.

Great news to those who want to move-up to bigger, more expensive homes, such as 4-bedrooms detached houses. You could find these properties in the Rathwood community, east Mississauga, such as in the Rockwood Village or Fleetwood Village. I live in this community and service the neighborhoods as a Realtor. For questions or for buying or selling real estate properties in Rathwood and the surrounding areas, please call me at 416-388-4987 0r email tasso@tassorealestate.ca .