RateSupermarket.ca’s panel of financial experts believes that variable mortgage rates will stay level while fixed mortgage rates could fluctuate slightly during July
TORONTO, July 7, 2010… RateSupermarket.ca, Canada’s independent mortgage rates comparison website, has announced the results of their Mortgage Rate Outlook Panel for July 2010.
Global economic uncertainty may dampen consumer confidence and cause Canadians additional stress during the summer holidays, but it also means that the Bank of Canada will not increase mortgage rates on July 20th resulting in unchanged variable mortgage rates in the short term.
Fixed mortgage rates: Unchanged
As the five year bond yield sags due to uncertainly about growth prospects in Canada and around the world, our Panel believes fixed mortgage rates could fluctuate by +/-0.10% in July but will effectively stay where they are for the time being.
The Bank of Canada’s next Monetary Policy Report is due on July 22nd, and this should give a better indication of the level of uncertainly in the market. A strong demand for residential mortgages by lenders is also stated as a key driver for keeping fixed rates level.
Variable mortgage rates: Unchanged
There’s a saying that when a storm is brewing it’s best to sit tight, and that’s just what our experts think the Bank of Canada will do at their next interest rate meeting at the end of July. Given an expected dip in Canadian consumer spending, widespread unemployment in the US and Europe, global fears of deflation, and debt levels that are threatening to put whole countries out of business – there’s just too much going on right now to justify a rate increase.
In this environment, the Bank of Canada is unlikely to increase interest rates in July, so variable mortgage rates will remain unchanged.
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)
- Garth Turner, Noted Canadian Author, Columnist, Speaker and Financial Commentator, Former MP
About RateSupermarket.ca (http://www.ratesupermarket.ca/)
RateSupermarket.ca is an independent, impartial resource that is not affiliated with any mortgage lender or broker. It is the only resource in Canada that allows visitors to compare the whole mortgage market in the country. RateSupermarket.ca also compares insurance products, credit cards and GIC rates.