Lots to Love About February Mortgage Rates

February mortgage rates forecast

RateSupermarket.ca’s expert Mortgage Rate Outlook Panel calls for competitive pricing to remain throughout winter months

Borrowing conditions will remain sweet for Valentine’s home buyers, as both fixed and variable mortgage rates will stick close to record lows. Competitive fixed rate pricing is supported by very low government bond yields, as investors flow into safe haven options amid a shaky global economy. Variable mortgage holders can expect stability for the remainder of the month, but should brace for potential change come March.

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Fixed Mortgage Rates: Unchanged

Five-year bond yields are pushing record lows at barely over half a per cent. This would usually put downward pressure on fixed mortgage rates – but lenders don’t have much room to discount amid today’s already competitive pricing. It’s expected that any change to the fixed cost of borrowing in the short term will be minimal.

Variable Mortgage Rates: Unchanged

With no Bank of Canada interest rate announcement this month, the variable cost of borrowing will remain stable for the short term. However, expectations grow of a rate cut by the central bank in March, as investment-grade corporate bonds have devalued, an indicator of poor economic conditions. As persistently low yields on mid-and-long term government bonds threaten to dip below 0.5% – the rate set by the Bank of Canada – the central bank may be prompted to make a downward move next month.

Click here to view the full February Mortgage Rate Outlook Panel>

Related Topics

Mortgage News / Mortgage Rate Outlook Panel / Mortgages

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