Tag Archives: Rate Outlook

Fixed Mortgage Rate Forecast – July 2013

5 year fixed mortgage rates are currently overpriced and you can expect to see a 0.25% drop in the next 30 days.  Fixed mortgage rates are priced off of bond yields of the same duration.  Last month the market reacted to comments from the Fed’s Ben Bernanke and bond yields shot upwards by 50 bps.  This reaction was without merit as Mr Bernanke’s comments were nothing new from his previous … Read More

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Variable Mortgage Rate Forecast – July 2013

It’s steady as she goes for variable mortgage rates for the foreseeable future.  Variable mortgage rates are linked to the overnight rate which is controlled by the Bank of Canada (BOC), and the BOC’s new chief, Stephen Poloz is maintaining the same cautious hand as outgoing chief Mark Carney. When asked when we can expect to see rates rise Mr. Poloz replied, “The honest answer is, we really don’t know”.  … Read More

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Mortgage Rates Are Going Up

Last week’s 0.25% increase in 5 year fixed mortgage rates is being followed up with another 0.15% increase effective tomorrow.  You may not see a change to any of the banks’ posted mortgage rates, but the best discounted mortgage rates will be 0.40% higher than they were 2 weeks ago. The sudden increase in fixed mortgage rates is a direct result of Ben Bernanke’s policy announcement south of the boarder.  … Read More

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RBC Raises Mortgage Rates

Rising bond yields have put upward pressure on fixed mortgage rates for the past few weeks and RBC was this first to flinch.  As of today RBC increased its 1 year mortgage rate by .14% to 3.14%; it’s 2 year mortgage rate by .1% to 3.14%; it’s 3 year mortgage rate by .1% to 3.65%; it’s 4 year mortgage rate by 0.1% to 3.09%; and most notably it’s 5 year … Read More

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Variable Mortgage Rate Forecast – May 2013

Mark Carney’s last rate announcement came and went without much fanfare.  Variable mortgage rates will remain the same at least until the next announcement date on July 17th, 2013 and likely well into the latter half of 2014. The Bank of Canada’s language hasn’t changed much from its previous interest rate announcement stating that low rates “will likely remain appropriate for a period of time, after which some modest withdrawal … Read More

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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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Flaherty Tells Bank to Raise Mortgage Rate

Jim Flaherty had one of his officials call Manulife Bank to voice his displeasure over their latest mortgage rate drop.  As a result, Manulife reversed a published rate drop to 2.89% for their 5 year fixed rate mortgage.  This unprecedented government intervention into the free market is a scary turn of events that threatens the principals on which our Country was built. Anti trust laws prohibit collusion among businesses including … 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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