Inflation on mortgage rate interest costs hits a record high
BNN Bloomberg
Overall inflation slowed in May to 3.4 per cent, but interest on Canadian mortgage costs rose a whopping 29.9 per cent – the highest increase on record for a third consecutive month as central bank interest rate hikes drive up housing costs.
Experts say the dynamic has set up a delicate tightrope for the Bank of Canada as its monetary policy aimed at bringing down consumer prices causes home prices to rise, and putting upward pressure on inflation as a result.
INTEREST RATE INFLUENCE
James Laird, co-CEO of Ratehub.ca and president of CanWise mortgage lender, told BNNBloomberg.ca that the mortgage interest figure was “far from a surprise,” as it reflects more than a year of steep interest rate increases.
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