Let’s take a look at the factors that influence fixed and variable mortgage rates in Canada.
On Thursday markets fell a heart stopping 4 percent, reminiscent of the dark days of 2008 and early 2009. In just two weeks the TSX has erased all its gains made in 2011. This time the risk is coming from the biggest economy in the world, the United States of America.
RateSupermarket.ca’s expert panel believes rates will stay low until the fall. You can’t rush a recovery – no matter how hard you try. With some of the world’s largest economies still struggling, the Bank of Canada is waiting patiently before making a move to increase interest rates which will also cause variable mortgage rates to rise. Fixed mortgage rates, on the other hand, will stay low as homebuyers retract from the market.
The Bank of Canada met this morning and as many experts predicted, including our Mortgage Rate Outlook Panel members, the key overnight lending rate will stay where it is at 1%. This means that the Prime Rate is also unchanged at 3%, and that variable mortgage rate holders don’t have to worry about payment increases just yet.
RateSupermarket.ca, Canada’s go-to website for comparing mortgage rates and credit cards, has announced the results from their Mortgage Rate Outlook Panel for May 2011.
There was a lot of doom and gloom talk yesterday about the spike in inflation. Here’s a summary of the details that you might have missed.
Yesterday, we told you how the rate of inflation affects interest rates. While it is important to understand how inflation works, there are several other indicators that are important to watch that also affect mortgage rates in Canada.
The interest rate announcement earlier today confirmed what many were expecting, the Bank of Canada will maintain the key overnight lending rate. The overnight rate continues to sit at 1 per cent, the Bank Rate is 1 1/4 per cent and the deposit rate is 3/4 per cent. This announcement mirrors the thoughts of our Mortgage Rate Outlook Panel and means that variable mortgage rates will remain unchanged.
RateSupermarket.ca’s panel of experts expect fixed and variable mortgage rates to stay put in the short term
RateSupermarket.ca has announced the results from their Mortgage Rate Outlook Panel for March 2011. The short term outlook for fixed mortgage rates is unclear with the Panel expressing conflicting views, but the resulting consensus is unchanged. Homeowners can also expect low variable mortgage rates to continue in the short term, while the long term outlook is a slow and steady increase set to begin around the middle of 2011.