Bank Of Canada Dismisses Data Showing Homes Are Overvalued, But Uses It For Rates

Author: External Author | | Categories: Commercial Mortgages , Mortgage Broker , Mortgage Rates

Inflation is transitory… or it may not be. It depends on whether the data is considered reliable enough that day. Bank of Canada (BoC) released a home price exuberance model, showing the market bubbles. Even more interesting is a footnote for the model they used. They feel inflation data on rent is unreliable, because it shows chronic overvaluation. So they dismissed it, despite it being used as a key data point supporting low interest rates. The data is bad when it shows overvaluation, but good when it supports higher home price growth. Oh boy. Let’s dive in.

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Original Article Source Credits:   Better Dwelling ,

Article Written By:  Stephen Punwasi

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