Improving economy won't be enough to hike central interest rates
TORONTO, July 10, 2014 /CNW/ - Prospective buyers looking to tackle Canada's scorching real estate market (and subsequent prices) can continue to rely on record-low borrowing costs this month, according to RateSupermarket.ca's expert panel. Discounted fixed and variable mortgage rates, which have proven to be the saving grace for many aspiring homeowners, will linger throughout July, softening the blow of tighter qualification requirements and ever-rising home prices.
Fixed Mortgage Rates: Unchanged: Fixed-rate mortgages will continue to be competitively priced this month, with the best five-year options below 3 per cent. Bond yields, which have experienced limited movement, won't put additional pressure on pricing, leading experts to believe rates will remain at status quo.
Variable Mortgage Rates: Unchanged: Despite encouraging signs of economic recovery both in Canada and the U.S., it's too soon to tell if changes to central interest rates would be sustainable. Higher-than-expected inflation numbers mean a rate cut is off the table - but it's also unlikely that the Bank of Canada will back away from current stimulus measures with a rate hike on July 16th.
This month's panel members:
● Will Dunning, Chief Economist, CAAMP; President, Will Dunning Inc.
● Dan Eisner, MBA. AMP. President, True North Mortgage
● Dr. Ian Lee, Director of the MBA program at the Sprott School of Business and Chair of the MBA Committee
● Kelvin Mangaroo, President, RateSupermarket.ca
About RateSupermarket.ca ( www.ratesupermarket.ca )
Over 7 million Canadians have found their best rate for personal finance products on RateSupermarket.ca. Launched in 2008, RateSupermarket.ca is Canada's most comprehensive rate comparison site, offering visitors transparent access to the best mortgage rates as well as credit cards, bank accounts, insurance quotes and GIC rates.