It is only 10 days ago some banks were predicting a decline in housing prices. Now they are adjusting the mortgage rates higher. Do you understant why they predicted a decline in housing prices now? Prices will remain stable in the Muskoka area this year because interest rates are still low and we can still get mortgages at less than 3% for new buyers. Interest rates cannot move to much too fast or the banks will have a ton of property on their hands. They are still allowing people to buy with small downpayments and mortgaging homes for as much as 90%. They do not want to create a housing crisis or they will create a bank crisis….