They say that every dark cloud has a silver lining and although it took me a while to find the silver lining in the storm clouds associated with the downgrading of the U.S. credit rating and the ensuing stock market turmoil, I actually found two layers of good news.

The first positive outcome is the fact that the U.S. Federal Reserve Board, which is the equivalent of our Bank of Canada, has definitively stated that interest rates will not be rising any time soon, specifically not before mid 2013.

And while that doesn’t mean that Canadian interest rates have to stay low, it certainly means that they are far less likely to rise.

As Ontario Home Builders’ Association President Bob Finnigan of Heathwood Homes states, “The very recent global economic news demonstrates the Bank of Canada needs to consider any future rate hikes with extreme caution, as the recovery may be more fragile than many believed.”

Finnigan is right on with his comments, which clearly demonstrate the linkage between housing affordability, of which interest rates represent a key factor in carrying costs, and the overall strength of the housing market.

Whatever the reason for the reprieve from rising interest rates, and there have been many over the last few years, the good news is that our all-time low borrowing costs will stay that way for the foreseeable future.

Of course the other thing that the stock market gyrations have underscored is the relative strength of real estate as a superlative long-term investment.

My advice is to take full advantage of low interest rates but play it safe by doing your math based on the potential of higher carrying costs down the road.

Stephen Dupuis is President and CEO of the Building Industry and Land Development Association (BILD) and can be found on Twitter (twitter.com/bildgta), Facebook (facebook.com/
bildgta), and BILD’s official online Blog (bildblogs.ca).