It may be the dog days of summer, but there’s been plenty of activity on the monetary policy front. Economic unease fueled by the Chinese market crash and EU concerns have fed healthy appetite for Canadian bonds, keeping yields and fixed mortgage rates relatively unchanged and at record lows. And, with no Bank of Canada rate announcement slated this month, variable mortgage holders can count on unchanged monthly payments – for the time being.
Fixed Mortgage Rates: Unchanged
How long can today’s fixed-rate mortgage bargains last? Despite increased speculation that a U.S. Fed rate hike could occur as early as September, it’s not expected that Canada’s cost of borrowing will be impacted in the short term – great news for buyers looking to break into the market before back-to-school season.
Variable Mortgage Rates: Unchanged
Lackluster economic data spurred the Bank of Canada to slash its trend setting interest rates by 0.25 per cent last month, setting the national cost of borrowing at 0.5 per cent. It was the second time since January the Bank has made such a move, in response to fallout from low oil prices. However, whether Canada is truly in a recession – and whether a third cut will be warranted – is still heavily debated. Our panel calls for unchanged variable mortgage rates for the time being.
Click here to read the full Mortgage Rate Outlook Panel>