The head of the Kamloops Real Estate Board says Wednesday’s key interest rate hike by the Bank of Canada is just another obstacle for homeowners.
The bank’s interest rate increase to 1.75 per cent is the third rate hike this year, and Doren Quinton says those compound with stricter mortgage rules.
“Rather than they key interest rate of 1.75, what we need to pay attention to is the prime rate which all four of the banks have already announced that they’re increasing to 3.95 per cent today.”
Quinton says the housing market is slowing right now and the new interest hike won’t help.
He doesn’t think rates will go up again this year, but expects the Bank of Canada to continue to increase rates in 2019.