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Here’s a look at how the uncertainty in the housing market is this affecting mortgage rates for homeowners.

The Current Landscape

Saskatchewan has had a for the last number of years. This occurs when the housing supply is larger than the demand, allowing buyers to be choosy and to negotiate, while sellers are forced to wait and possibly cut their prices.

In 2018, it was predicted that Saskatoon’s housing market would continue to decline for the fourth consecutive year before it rebounded and experienced growth in 2019-20. Although the market’s absence of wild changes can be considered positive because it shows that the housing market is not in a “boom or bust” cycle, it also means that change can be excruciatingly slow to occur. Factors that affect the markets, and that could risk them bouncing back, include
population, job, and income growth.

The New Mortgage Rules

Federal mortgage rules were changed near the beginning of 2019 in an attempt to cool the housing market in Toronto and Vancouver, but this has negatively impacted the Saskatchewan market. These new rules have not only weakened the market, but forced some people to leave it altogether. During this time, the Canadian Home Builders’ Association estimated that had been taken out of the market, with over half being first-time buyers.

What are Mortgage Rates Doing Now?

In May of this past year, experts were still warning that although the market had seen an upswing, the damaging results of the mortgage stress test rules were still very present. Many potential home buyers with a downpayment of 20% would either have to come up with an additional or lower their target price. Check out our to see what today’s best rates are and what kind of rate you could get.

Economists are struggling to predict what mortgage rates will do in the long-term due to economic uncertainty. What they are agreeing on is that rates may change after the federal election, but are uncertain what the future may hold post-election.

As your Mortgage Group professional, I offer one-stop convenience and impartial advice. My job is to help you find the mortgage that best suits your financial needs. Make an appointment with me at (306) 220-0425 for more information.