Comments from Poloz in Winnipeg

  • No comments on the outlook for interest rates
  • Housing market growth will resume once effects of reduced expectations for house price inflation and new mortgage guidelines have been absorbed
  • Worth examining whether mortgage market could be more flexible, including on durations
  • Longer-term mortgages cut the risk of having to renew at higher rates
  • Private MBS could be another option for pensions and insurance companies
  • Private MBS would have to be designed carefully and would have to be transparent

Poloz and the BOC have overestimated the housing market over the past year or so. They continue to expect better times ahead.

Data today from Toronto showed a 14% picked up in home sales volumes with prices up around 1.5% year over year so there are signs of stabilization.