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Relief on the way?

The cost of owning a home in Canada continued to climb in the second quarter, but homeowners may soon experience some temporary relief as house prices and some mortgage rates subside, according to a report released yesterday.

The cost of owning a home in Canada continued to climb in the second quarter, but homeowners may soon experience some temporary relief as house prices and some mortgage rates subside, according to a report released yesterday.

The RBC Economics Research report found home ownership costs continued to rise in the second quarter of 2010, eroding affordability in most markets.

“The recent decline in mortgage rates and increasing evidence that home prices have started to stabilize in many markets are anticipated to provide some respite from the deteriorating trend in affordability in the near term; however, this is expected to prove temporary,” RBC economist Robert Hogue wrote.

In the longer term, RBC said the trend of rising homeownership costs will return as the Bank of Canada continues hiking the key lending rate over the next year and a half, sending variable mortgage rates higher.

 
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