Bank of Canada Expected to Hold Off on Rate Increase

RateSupermarket.ca’s panel of financial gurus expect mortgage rates will remain level during September

TORONTO, Sept 2, 2010… RateSupermarket.ca, consumers go-to shop for comparing Canadian mortgage rates offered by banks, mortgage brokers, and credit unions, has announced the results of their Mortgage Rate Outlook Panel for September 2010.

Canadians should expect both fixed and variable mortgage rates to hold steady in September.

Fixed mortgage rates: Unchanged (with downward bias)

Canadian consumers were handed a treat when fixed mortgage rates dropped back down to historic low levels in August. Our Panel of experts believe September will be very similar with a small possibility of further downward movement.

Increasing concern in both Canada and the US on the strength of an economic recovery has dampened the Canadian bond market and put a lid on fixed mortgage rates for the time being. As well, banks are fighting for fewer new mortgage clients as housing sales slow down, and with less borrowers out there the competition will heat up; a perfect environment for price cutting.

Variable mortgage rates: Unchanged

We’ve seen economic predictions change very quickly over the past few months and it’s happened again. The Bank of Canada was widely expected to increase rates once more next week and then pause while they reviewed the impact of these hikes. However, recent news about slower economic growth and lower inflation is giving Governor Mark Carney good reason to not increase interest rates, and our Panel expects variable mortgage rates to stay where they are.

To read all the detailed commentary from our panel members, please visit:

http://www.ratesupermarket.ca/mortgages/rate_outlook_panel/

About the Mortgage Rate Outlook Panel

The panel includes some of the country’s top mortgage experts, and helps Canadian consumers make informed decisions by offering a short-term outlook for fixed and variable mortgage rates.

This month’s panel members:

  • Dan Eisner, MBA. AMP. President, Verico True North Mortgage
  • Dr. Ian Lee, Director of MBA Program, Sprott School of Business, Carleton University
  • Elisseos Iriotakis, B.Comm, CFP, FMA, AMP, President SAFEBRIDGE Financial Group
  • George Hugh, Vice President, Treasury, ING DIRECT
  • Larry MacDonald, Economist, business journalist and author, Canadian Business

About RateSupermarket.ca (www.ratesupermarket.ca)

RateSupermarket.ca is an independent, impartial resource that is not affiliated with any mortgage lender or broker. It is the only resource in Canada that allows visitors to compare the whole mortgage market in the country. RateSupermarket.ca also compares insurance products, credit cards and GIC rates.

Related Topics

Economic News / Mortgage Rate Outlook Panel

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