It’s interesting to see all the forecasts in the media these days. Just last month we saw the bond market go up which caused Experts to forecast for an increase in fixed rates (bonds affect fixed rates, Bank of Canada rate affects variable rates). Economic recovery was going great…but then we saw some poor job creation data….. and less jobs means less cause for inflation (if inflation is lower than the bank’s target, then the Bank of Canada is unlikely to raise the Bank rate).
Looks like the recovery will be slower and take longer than expected…and this will be good news for borrowers as rates should remain low a little longer now…. maybe no increases til 2011? Financial Post
Hard to believe that we were or are in a recession when you hear reports like this one in the media. It’s easy to say that this market is interest rate driven…. there’s a lot of truth to that, but there must also be some level of consumer confidence… confidence in having a job, being able to pay the mortgage… We’ll have to watch and see how the Feds will view these numbers…
Remember, inflation will surely cause the government to raise rates.. up til now, no inflation concerns… Personally, I think it was partly driven by pent-up buyer demand…the market was much slower than normal in September, October and November… we’ll be watching and reporting…stay tuned..
Last year, variable rate mortgages were Prime plus 0.60%… a far cry from the Prime minus 0.90% that we saw 2 years ago. Today, one of our Lenders has just come out with a special promotion of Prime less 0.30%….wow! Prime is 2.25% less 0.30% gives us a rate of 1.95%…. gotta love it.
Welcome to the launch of CanadaMortgageNews.ca. This is the place to find the latest on interest rates, trends, forecasts and 0pinions…. A mortgage is the biggest debt for most of us…take the time to get informed and stay informed…
The good news for today is that the Bank of Canada announced they won’t raise interest rates to cool the housing market, according to an article in the Globe and Mail, Jan 11th.