RateSupermarket.ca’s Expert Panel Believes Rates will Stay Low until the Fall
You can’t rush a recovery – no matter how hard you try. With some of the world’s largest economies still struggling, the Bank of Canada is waiting patiently before making a move to increase interest rates which will also cause variable mortgage rates to rise. Fixed mortgage rates, on the other hand, will stay low as homebuyers retract from the market.
Fixed mortgage rates: Unchanged
We’ve seen lower fixed mortgage rates over the past few weeks, and our Mortgage Rate Outlook Panel believes this mortgage rate trend will stick around. Home sales are slowing, warnings continue about over leveraged consumers and bond yields have dropped. As the demand for mortgages continues to soften, expect to see enhanced competition from lenders for new customers.
Variable mortgage rates: Unchanged
It was no surprise that the Bank of Canada held its key overnight lending rate at 1 per cent at their last meeting on May 31st. Our Panel believes we might be in for a few months of inactivity from the Governor before we see another increase.
Although Canada’s economic performance warrants higher interest rates, if we make a move ahead of the pack we’ll risk a spike in the Canadian Dollar and a negative impact on manufacturing and exports in general. So as the US and Europe struggle with unemployment, sluggish recovery and debt, Canada will sit and wait for the right time to move.
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, President, Taurus Mortgage Capital
– Mark Kocaurek, Senior Vice President, Treasury & Lending (Chief Lending Officer) of ING DIRECT Canada
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.