{"id":38539,"date":"2018-10-01T06:46:09","date_gmt":"2018-10-01T11:46:09","guid":{"rendered":"http:\/\/olduvai.ca\/?p=38539"},"modified":"2018-10-01T06:46:09","modified_gmt":"2018-10-01T11:46:09","slug":"why-rising-mortgage-rates-threaten-canadas-banks","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=38539","title":{"rendered":"Why Rising Mortgage Rates Threaten Canada\u2019s Banks"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"https:\/\/wolfstreet.com\/2018\/09\/30\/rising-mortgage-rates-bigger-risk-in-canada-house-price-bubble-than-us\/\">Why Rising Mortgage Rates Threaten Canada\u2019s Banks<\/a><\/h3>\n<\/header>\n<div class=\"entry-content\">\n<p><strong>Wolf Richter with Jim Goddard on\u00a0<\/strong><a href=\"http:\/\/www.howestreet.com\/\" target=\"_blank\" rel=\"noopener\"><strong>This Week in Money:<\/strong><\/a><\/p>\n<p>Interest rates will continue to rise in the US and Canada. In both countries, potential buyers face affordability issues, which puts a damper on demand. But in Canada, variable-rate and adjustable-rate mortgages dominate (while ARMs are only 6% of all mortgage originations in the US), and <em>current<\/em>homeowners have to struggle with rising monthly payments of homes they bought at inflated prices. This has already started to happen. Here\u2019s my take:<\/p>\n<div class=\"responsive-video-wrapper\"><iframe src=\"https:\/\/www.youtube.com\/embed\/-cZT-lboDlo?start=5970&amp;feature=oembed\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<p>Home-equity-loan balances in Canada per capita are now 3.3 times what they were in the US during HELOC peak before it all collapsed. Read\u2026 <a title=\"\" href=\"https:\/\/wolfstreet.com\/2018\/09\/20\/heloc-balances-u-s-canada-house-price-bubble-risks-housing-bust\/\" rel=\"bookmark\">HELOCs in the US &amp; Canada: As \u201cScarred\u201d Americans Learned Bitter Lesson, Canadians Went Nuts <\/a>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Why Rising Mortgage Rates Threaten Canada\u2019s Banks Wolf Richter with Jim Goddard on\u00a0This Week in Money: Interest rates will continue to rise in the US and Canada. In both countries, potential buyers face affordability issues, which puts a damper on demand. But in Canada, variable-rate and adjustable-rate mortgages dominate (while ARMs are only 6% of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[103,3048,431,18655,18654,4254,4255],"class_list":["post-38539","post","type-post","status-publish","format-standard","hentry","category-economics","tag-canada","tag-canadian-banks","tag-interest-rates","tag-jim-goddard","tag-this-week-in-money","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/38539","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=38539"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/38539\/revisions"}],"predecessor-version":[{"id":38540,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/38539\/revisions\/38540"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=38539"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=38539"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=38539"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}