RateSupermarket.ca Expert Panel Calls for Slight Fixed Rate Rise
January 9, 2014: Toronto, Ontario – The new year is off to a frigid start across Canada, and the same can be said for mortgage rates. While 2014 is anticipated to be a banner year for Canadian economic growth, it’s too soon to know when such improvements will be realized – the Bank of Canada is likely to stick with its current monetary policy strategy until real progress is made. While external factors, such as the U.S. taper, are currently having an upward effect on fixed rates, it is unclear what the long term implications will be.
Fixed Mortgage Rates: Down
Fixed mortgage rates are expected to creep moderately higher this month, as bond yields are pushed up by markets reacting to the first installment of the U.S. taper. A seasonally slow winter market suggests lenders may wait until the more active spring season to discount their fixed rate offerings.
Variable Mortgage Rates: Unchanged
Canada’s inflation rate remains below expectation, and other growth factors such as exports and business investment fail to improve enough to mend the gap. Until these factors rebound, and until there is sustained economic improvement in the U.S., the Bank of Canada is not anticipated to increase the Overnight Lending Rate.
This month’s panel members:
Ron Butler, Mortgage Broker, Verico Butler Mortgage
Dan Eisner, MBA. AMP. President, True North Mortgage
Dr. Ian Lee, Program Director, Sprott School of Business, Carleton University
Kelvin Mangaroo, President, RateSupermarket.ca
This post is also available in: French