RateSupermarket.ca Mortgage Panel calls for unchanged cost of borrowing as U.S. Fed ends bond buying program
There may be big economic developments south of the border, but they’ll fail to shake up Canadian mortgage rates this month. Fixed rates are to remain consistent as bond yields stick to their trajectory, while the variable cost of borrowing is unphased by the end of the U.S. Fed’s bond buying program; policy makers in both countries insist there is no imminent change for central rates.
Fixed Mortgage Rates: Unchanged
Government of Canada bond yields have remained consistently low since the summer months, with no significant reaction to recent events affecting economic stimulus measures in the U.S. There’s no expectation that fixed mortgage rates will move in either direction for the coming month.
Variable Mortgage Rates: Unchanged
Even though October spells an end of the U.S. Fed’s quantitative easing taper, policy makers there have been adamant that a rate increase will not follow immediately suit. This sentiment has been echoed by Bank of Canada Governor Stephen Poloz, who has stated that economic conditions here don’t yet warrant any change to central rates. All signs point to a sustained cost of variable borrowing in the months to come.
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, Program Director, Sprott School of Business, Carleton University
Kelvin Mangaroo, VP, Corporate Development at Kanetix