Recent headlines may point to economic unease internationally and at home, but mortgage shoppers can count on ultra-low mortgage rate pricing to last throughout the summer. RateSupermarket.ca’s Mortgage Rate Outlook Panel points to a persistently low-yield Canadian bond market to support fixed-rate discounts, while a move by the Bank of Canada on variable-rate pricing is unexpected in the short term.
Fixed Mortgage Rates: Unchanged
Despite current geopolitical conflicts, Canadian bond yields have weathered the volatile global bond market, and yields have remained relatively stable, dipping back to sub-1 per cent pricing in recent weeks. Combined with a continuously competitive summer borrowing season, lenders are unlikely to switch gears on their discounting tactics.
Variable Mortgage Rates: Unchanged
While the Canadian economy is still absorbing the impact of lower oil prices, our central bank has stated household debt levels and real estate prices pose the greatest threat to economic stability. However, it’s not expected they will take action in the short term with interest rates, leaving the variable cost of borrowing unchanged throughout June and July.
Click here to read the the full Mortgage Rate Outlook for June>
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