Improving economy won’t be enough to hike central interest rates
Prospective buyers looking to tackle Canada’s scorching real estate market (and subsequent prices) can continue to rely on record-low borrowing costs this month. Discounted fixed and variable mortgage rates, which have proven to be the saving grace for many aspiring homeowners, will linger throughout July, softening the blow of tighter qualification requirements and ever-rising home prices.
Fixed Mortgage Rates: Unchanged
Fixed-rate mortgages will continue to be competitively priced this month, with the best five-year options below 3 per cent. Bond yields, which have experienced limited movement, won’t put additional pressure on pricing, leading our experts to believe rates will remain at status quo.
Variable Mortgage Rates: Unchanged
Despite encouraging signs of economic recovery both in Canada and the U.S., it’s too soon to tell if changes to central interest rates would be sustainable. Higher-than-expected inflation numbers mean a rate cut is off the table – but it’s also unlikely that the Bank of Canada will back away from current stimulus measures with a rate hike on July 16th.
This month’s panel members:
Will Dunning, Chief Economist, CAAMP; President, Will Dunning Inc.
Dan Eisner, MBA. AMP. President, True North Mortgage
Dr. Ian Lee, Director of the MBA program at the Sprott School of Business and Chair of the MBA Committee
Kelvin Mangaroo, President, RateSupermarket.ca
Ask the Mortgage Experts!
Do you have a question about the home buying process, applying for a mortgage, or getting the best rate? Ask the Mortgage Rate Expert Panel! Submit your question to Penelope@ratesupermarket.ca – your question and expert answer could be featured in MoneyWise!