Interest rates in the United States. People need to know that, in the United States, mortgage interest rates are not fixed for five years as they are in Canada, where you can get a variable rate. In the United States, you sign up for a fixed 30-year term. If you build a house in the United States today, you sign a mortgage, and the interest rate is fixed at 6% or 6.3% for 30 years.
Naturally, despite the housing shortage in the United States, people are holding back. They are waiting for a rate correction. This is where inflation and the U.S. macroeconomic situation come into play. It would be different if borrowing costs in the United States were just half a point or one point lower. This could happen in 12, 24, or 36 months.
Let's look at the shortage in 2021. That should be the baseline we keep in mind as we decide on the best response and establish a normal business environment. It's the perfect storm that we will emerge from with market conditions.