Decreased Mortgage Demand and Consumer Spending Keep Rates Low

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RateSupermarket.ca’s panel of experts don’t expect many changes to mortgage rates in November

TORONTO, Nov 4, 2010… RateSupermarket.ca, Canada’s go-to website for comparing mortgage rates, has announced the results from their Mortgage Rate Outlook Panel for November 2010.

The experts believe Canadians will have continued low fixed and variable mortgage rates throughout November.

Fixed mortgage rates: Unchanged

The big five banks have finished their fiscal year ends so there is little reason to continue what has been a powerful fight for market share over the past few months which has helped keep mortgage rates low. However, a significant decrease in demand for mortgages, along with a decline in consumer confidence will stop rates from increasing in the short term. As well, The Bank of Canada recently announced downward revisions to economic growth and inflation. All of this means that bond yields have remained fairly flat and are expected to stay that way; therefore; fixed mortgage rates will also remain level.

Variable mortgage rates: Unchanged

Our experts believe that the cooling off of consumer spending and the economy in general, coupled with uncertainty over the extent and outcome of financial stimulus by the Fed in the US, will cause The Bank of Canada to hold off on interest rate increases for a while now. Top economists are not expecting a change to the key overnight lending rate until at least the first quarter of 2011.

To read all the detailed commentary from our panel members, please visit: Mortgage 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
  • George Hugh, Vice President, Treasury, ING DIRECT
  • Gregory Klump, Chief Economist, Canadian Real Estate Association (CREA)
  • 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

Mortgage News / Mortgage Rate Outlook Panel / Mortgages

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