5 year fixed @ 2.99% is back. This is NOT a NO FRILLS product (for those of you that saw a similar rate elsewhere earlier this year) but there is tougher qualifying. This seems to have become an annual event. For the past 3 years, we’ve seen 2.99% or less, being offered each Spring. So, why haven’t rates gone up like the Bank’s economists, government analysts and other so-called ‘experts’ had predicted?
There are several reasons but, to sum it all up, the global economies haven’t recovered from the 2008 recession. The US recovery is slower than expected. Canada’s inflation rate is below target levels. There were even concerns we could see deflation, which would cause the Bank of Canada to lower rates… those concerns have gone away…. for now!
WHAT’S THE FORECAST NOW?