Tuesday, 25 February 2014

Business Reflection #5: Housing to get less affordable as mortgage rates rise, RBC warns

Title: Housing to get less affordable as mortgage rates rise, RBC warns
http://www.cbc.ca/news/business/housing-to-get-less-affordable-as-mortgage-rates-rise-rbc-warns-1.2550370
 Date: February.5th,2014

          The Royal Bank of Canada says the ability of Canadians to keep up with housing costs has been improving lately, but warns that about to change. RBC's latest housing affordability messures show home servicing costs relative to incomes dipped slightly in the last 3 months of 2013 after rising the previous2 quarters. With this in mind the relief will be temporary, the bank says, because mortgage rates are due to start rising this year. The bank then goes on to state that the longer term interest rates will begin to moderately rise, which will cause the cost of owning a home will increase.
         Personally, this worries me. Due to the fact that being only 19 and not owning a home yet, knowing all the increases  makes me feel by the time I get the opportunity to own a home it will be too expensive.

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