Despite downward pressure, RateSupermarket.ca’s panel of experts predict flat mortgage rates in October
TORONTO, Oct 6, 2010… RateSupermarket.ca, the online comparison website for personal finance products such as mortgages, insurance, credit cards and GICs, has announced the results from their Mortgage Rate Outlook Panel for October 2010.
The outlook for the month is unanimous; Canadians should expect mortgage rates across the board to remain level at or near historical lows.
Fixed mortgage rates: Unchanged
Despite lower bond yields due to slowing economic growth and deflation worries, fixed mortgage rates are not expected to decrease any further. Lenders have already tightened their belts by squeezing margins, any extra decreases are not expected to stimulate housing activity enough to make it worth while; so fixed mortgage rates will remain at current levels for the immediate future.
Variable mortgage rates: Unchanged
Economic growth is slowing by more than the Bank of Canada projected in its last Monetary Policy Report. GDP growth is declining, the US continues to show signs of weaknesses, and home purchases continue to fall. As a result, our panel members expect the Central Bank to hold off on raising interest rates further following their next meeting on October 19th.
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
- 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
RateSupermarket.ca is an independent, impartial resource that is not affiliated with any mortgage lender or broker. It enables Canadians to compare the whole mortgage market with one simple search. RateSupermarket.ca also compares insurance products, credit cards and GIC rates.