New rules SHOULD dampen home sales. If Canadians are too irresponsible (or just too financially illiterate) to stress test their own mortgages by a couple of percentage points (which seems like common sense), then somebody else absolutely should. Of course it will hurt the current housing market, because the current market is neither based on prudence, nor supported by economic fundamentals (as every economist and their dog likes to point out.)
The party is over folks! Please put down the koolaid.