by Wolf Richter, Wolf Street:
As the Bank of Canada’s rate hikes and QT goose mortgage rates, some practically funny price spikes are getting unwound very fast.
Canada’s housing market is trying to figure out where reality is? After the era of ridiculous house-price spikes, triggered by the Bank of Canada’s interest rate repression and QE, the BoC now gets to grapple with raging inflation by hiking interest rates and shedding assets (QT), which has been pushing up mortgage rates, which renders them indigestible for hyper-inflated markets, though not all markets are hyper-inflated, as we’ll see in a moment.
