Tag Archives: Mortgage Rate Outlook

Fixed Mortgage Rate Forecast – May 2013

You can expect 5 year fixed mortgage rates to move up slightly over the next 30 days.  Fixed mortgage rates are tied to the bond market as most mortgage lenders issue bonds to raise the money to lend out as residential mortgages.  The lower the yields on the bonds they have to pay out, the lower the fixed mortgage rates they can offer.  The bond market has been on a … Read More

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The Problem with Low Mortgage Rates

Anyone with a mortgage is happy to hear that mortgage rates are dropping. With today’s ultra low mortgage rates we’re even happy to hear that they’re just staying the same. Low mortgage rates mean low monthly payments and we’re all happy to have a little extra money each month. The problem with low mortgage rates is that they’re the result of an anemic economy with a weak outlook. An anemic … Read More

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Fixed Mortgage Rate Forecast – April 2013

Fixed mortgage rates are at record lows and aren’t expected to go anywhere for at least the remainder of 2013.  Mark Carney’s final economic forecast, released earlier this week, cuts the 2013 growth outlook and predicts that our economy won’t hit full capacity for at least 2 more years. Although variable mortgage rates and fixed mortgage rates are governed by different economic levers they have one thing in common – … Read More

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Variable Mortgage Rate Forecast – April 2013

The Bank of Canada (BOC) maintained it’s target for the overnight rate at 1% this morning.  The net result is that there is no change to the prime rate of interest until their next announcement date which is scheduled for May 29th.  This is good news for variable mortgage rate holders and for those with home equity lines of credit.  Equally important as today’s interest rate decision is the language … Read More

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BMO Pulls 2.99% Mortgage Rate

Bank of Montreal (BMO) will raise the rate on its widely publicized 2.99% 5 year fixed mortgage rate in a couple of days.  The “No Frills” mortgage has always carried restrictions including a “no-pay-out” clause, limited pre-payment options and a set expiry date.  The current expiry date is set for tomorrow March 28th, and the bank has made it clear that it will not extend the date. Although the mortgage … Read More

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Variable Mortgage Rate Forecast – March 2013

Variable mortgage rates will stay where they are well into the Spring and Summer markets.  The Bank of Canada’s next meeting date to review and adjust the overnight lending rate is April 17th when there is almost no chance of a rate change.  In fact, the prime lending rate is so well balanced right now that we are seeing some economists call for a rate drop.  Overall, the vast majority … Read More

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Fixed Mortgage Rate Forecast – March 2013

Bond yields have come down in March giving the banks room to maneuver in pursuing the Spring mortgage market. Record low mortgage rates are currently available and are expected to persist for at least the next 30 days.  Yields started the year in the mid 1.4% range and except for a brief run up to 1.53% have remained relatively flat.  In March the government of Canada benchmark 5 year bond … Read More

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Let the Mortgage Rate Wars Begin

The clear sign of a mortgage rate war is when Bank of Montreal (BMO) starts advertising a 2.99% 5 year fixed mortgage rate.  Although current bond yields don’t support such a low mortgage rate we are entering the critical spring season that can make or break a bank’s annual lending target. The tightened mortgage rules have done their job and pushed many potential buyers out of the market and scared … Read More

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Variable Mortgage Rate Forecast – February 2013

Variable mortgage rates are tied to your banks prime lending rate which is in turn tied to the Bank of Canada’s overnight rate. Now that Mark Carney has pledged to not raise the overnight rate for at least a year it’s made my job of rate forecasting considerably easier. Variable mortgage rates aren’t going up! Having said that, economic conditions can change and I will continue to check in on … Read More

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Fixed Mortgage Rate Forecast – February 2013

The Government of Canada benchmark 5 year bond is currently yielding 1.40%.  It’s current position is in the middle of the previous 12 month range where the high hit 1.74% and low hit 1.06%.  Its future path is expected to stay within the same range over the next several months.  While bond yields represent mortgage lending costs it’s not the only factor determining 5 year fixed mortgage rates. Competitive pressures … Read More

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