Low mortgage rates expected to jump-start real estate market
Bank of Montreal's new five-year fixed rate of 2.99 per cent will inspire buyers, realtors say
Realtors in New Brunswick say lower mortgage rates should soon get the sluggish housing market moving again.
Last week, the Bank of Montreal announced it was slashing its five-year fixed rate mortgage to 2.99 per cent, down from 3.49 to per cent.
"Pleased to see it because it's a buyer's market in Fredericton, and now it's going to be even more of a buyer's market because they're going to be inspired to get out there," Steeves said at a recent open house.
Kara Angus, who has been watching mortgage rates for several years and is about to build a new home in Mactaquac with her husband, agrees.
"I definitely think it's a buyer's market, it has been for a couple years. There's a lot more houses being sold than being purchased for sure," said Angus, noting it took seven months to sell their current home.
"So I do think it creates opportunity and openings for those looking in to purchase new homes. With the lower rates, it makes an incentive to purchase, which in turn will help the sellers as well. So all around, I think it's a good idea and a positive benefit for our community for sure."
The extended winter has made it difficult for home buyers because they can't inspect roofing or foundations until the snow is gone, said Steeves.
She hopes that with new, lower mortgage rates, it's going to be a busy spring.