Friday, April 18, 2008
Canada to reignite housing market?
Even though the central bank has slashed its key interest rate to 3.50% from 4.50% since December, mortgage rates have come down only about half as much. Banks are facing higher funding rates themselves and have been reluctant to pass on the savings fully. Many economists expect the Bank of Canada to cut rates another half a percentage point on Tuesday, perhaps invigorating the spring selling season, which could prove to be the key test for the Canadian housing market going forward.