But Canada has a massive housing bubble. And it will burst. And….. I don’t need any stinkin”expert to tell me what is obvious and in everyone’s face! Or as Bob Dylan sang “You don’t a weatherman to know which way the wind blows”
The level of debt that Canadians have taken on in comparison to their incomes has put many in a precarious position should mortgage rates continue to rise — which is likely, Phillip Colmar, partner at Global Strategist at MRB Partners, told BNN Bloomberg in an interview on Tuesday.
Colmar argued that the inflated home prices in Canada are a result of two decades’ worth of easy money supplied by the Bank of Canada’s monetary policy for numerous reasons. At present the moment, he sees risk in mortgage rates climbing as Canadian bond yields are dragged up, particularly at a time when debt-to-income ratios are sky high.
While the Canadian banks are doing their part to stop the housing market from toppling over, Colmar said he believes it inevitably will.