Home Sales down 9.5% and new mortgage guidelines limit how much people can borrow

The Real Estate market is slowing but different segments are affected differently.
The beginnng of summer time, the raise of interest rates, the new mortgage rules and the implementation of Harmonized Sales Tax are the main reasons affecting the current marketing conditions. An article published yesterday (June 17, 2010) in the National Post (Financial Section) saying that the "Existing-home sales fell 9.5% in May from the previous month...", just confirmed my suspicions.
The same article also says that "tougher rules in the country's mortgage market took effect in April. All those looking for home-financing loans must now meet the standards set for five-year , fixed-rate mortgages, even if they are seeking a variable-rate mortgage. These guidelines effectively limit how much people can borrow.