RateSupermarket.ca’s panel of experts are not in agreement on the direction of fixed mortgage rates, low variable rates expected to continue
TORONTO, March 7, 2011… RateSupermarket.ca, Canada’s go-to website for comparing mortgage rates, has announced the results from their Mortgage Rate Outlook Panel for March 2011.
The short term outlook for fixed mortgage rates is unclear with the Panel expressing conflicting views, but the resulting consensus is unchanged. Homeowners can also expect low variable mortgage rates to continue in the short term, while the long term outlook is a slow and steady increase set to begin around the middle of 2011.
Fixed mortgage rates: Unchanged
Fixed mortgage rates have increased over the past few weeks and although the experts expect the upward trend to continue during 2011, it’s unclear where fixed rates are headed in the short term. The unrest in the Middle East is expected to put a short term lid on bond yields and possibly even cause yields to drop, which would normally result in slightly lower fixed mortgage rates, but given the strong Canadian dollar and moderate economic growth, the banks are more likely to stay pat then lower fixed rates again.
Variable mortgage rates: Unchanged
The recent increase in oil prices as well as escalating food prices means global inflationary pressures are rising. However, these elevated prices are expected to slow but not derail global growth. The current belief is that the Bank of Canada will start increasing interest rates as we head into the summer, meaning variable mortgage rates will remain steady for a few more months.
To read all the detailed commentary from our panel members, please visit:
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, President, SAFEBRIDGE Financial
– George Hugh, Vice President, Treasury, ING DIRECT
About RateSupermarket.ca (www.ratesupermarket.ca)
RateSupermarket.ca is the largest independent and impartial rate comparison service for personal finance products in Canada. Founded in May of 2008, their easy to use comparison engine provides much needed transparency to the Canadian financial market and allows visitors to quickly find the best rates. Over 1M Canadians have turned to RateSupermarket.ca to save money on their mortgage, insurance, credit cards and GICs.