Higher interest rates spike mortgage costs in Calgary

Seven consecutive interest rate hikes from the Bank of Canada this year has cooled the housing market in Calgary, as people shy away from borrowing at higher rates. Experts say affordability is still a problem and increased interest payments mean it won't change very soon. "With the increase in interest rates, those mortgage payments have absolutely soared," said Charles St. Arnaud, chief economist with Alberta Central, the trade association for Alberta's credit unions. But it's still obviously more expensive now to afford a house than it was at the beginning of the year, but that's mainly because of interest rates." He is hopeful that interest rates will start to come down in about a year's time.