Here’s a great article that explains there is no reason to panic… This week saw the much expected hike in mortgage rates… Bond market is up around 0.30% but the Banks felt they needed to increase the rates by 0.60%….
Hmmmm…didn’t the Banks just announce some HUGE discounted rates a week or two ago? Talk about a strategic PR move…. Well, that didn’t last long…they have all bumped up the Posted rates…
With the Canadian $dollar just about equal with the $U.S. dollar, there is a little less pressure for the Bank of Canada to raise the overnight rate as aggressively as once thought….we can still expect increases of 0.25% to 0.75% over the next 6 to 12 months but remember that we are well below the 10 yr average of 5.177 and well below the 25 year average of 6.92%....Historically, if the $CAD rises, then the Bank of Canada is less likely to raise rates…
3 main factors to watch that will affect the Bank of Canada Rate…. Inflation, unemployment and the $CAD. Oh, and by the way, here are the 8 preset dates when the Bank of Canada sets the overnight rate.
Tuesday, 19 January 2010
Tuesday, 2 March 2010
Tuesday, 20 April 2010
Tuesday, 1 June 2010
Tuesday, 20 July 2010
Wednesday, 8 September 2010
Tuesday, 19 October 2010
Tuesday, 7 December 2010