[ClassicSpiderman]

Thanks for all of your replies. I think I understand it a little better now.

Basically from my understanding, the drop in interest rates have lowered everyone's mortgage payments and they rationalized that they should borrow more to buy more stuff while paying the same amount on their house payment every month.

Problem with that is that it's unsustainable and requires the good will and kindness of the official interest rate to remain low.

I have a 4.75% rate of interest rate locked in on my house (first time buyer) and there is 3 years left for the term. When it comes time to renew for another 5 year term, the interest rate will most likely be higher. This is why I am always making extra mortgage prepayments whenever possible. If the interest rate is the same or even lower than what I am paying now--that's just extra gravy. If it is 10%, then my forward-thinking will shield me from some of the effects of higher mortgage payments (who knows, maybe I won't even pay that much higher even if the rate of interest is 10%).