RateSupermarket’s Expert Panel Questions Sustainability of Low Spring Rates
Time may be of the essence for home buyers looking to cash in on low spring mortgage rates. While some lenders have kicked off the home buying season with mortgage discounts, it’s questionable whether a low-rate environment can last, according to RateSupermarket’s monthly expert mortgage panel.
Global economic trends are anticipated to shift out of favour for safe haven bonds, driving yields and fixed rates higher. On the domestic front, there is no change anticipated from Canada’s central bank as growth factors continue to underperform, leaving variable mortgage rates untouched.
Fixed Mortgage Rates: Up
The typically competitive spring buying season is just heating up in Canada – and some lenders, such as BMO, have introduced discounted rates to kick off the action. However, the expert panel indicates changing global economic trends will counter the possibility of a competitively low interest rate environment as investors shift their focus from safe haven bonds, driving yields and fixed rates higher in the long term.
Variable Mortgage Rates: Unchanged
Economic growth factors continue to underperform, giving the Bank of Canada no reason to change central interest rates in the April 16th announcement. While a lower loonie may give inflation a small boost, it’s not likely this will prompt any change from the bank to the current cost of borrowing.
This month’s panel members:
Ron Butler, Mortgage Broker, Verico Butler Mortgage
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, President, RateSupermarket
This post is also available in: French