DON'T WAIT - STAND UP AND CHEER!
Thu, 09/17/2009 - 2:58pm — awm
With all the positive news floating around the media today, it is hard not to get excited about the future. Just to see the end of the doldrums is enough to stand up and cheer about!
There is a dark side of the recovery, one that we don’t like to think about: As the economy starts to heat up, inflation will start to heat up as well. The new money printed last year will begin to exacerbate this potential inflation. To counter these inflationary pressures, the Bank of Canada and their counterparts in the US will have to raise interest rates. Currently, the Bank of Canada is committed to hold the bank rate until May, 2010; but if things really heat up, they won’t wait. Five year fixed interest rates are very low at present, but according to comments made by CIBC Chief Economist Benjamin Tal at the AMBA Annual Conference we may see significant increases in the beginning of 2010.
One thing is for sure – the days of low interest rates are waning. If you need to lock into a new fixed rate mortgage don’t wait!
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