TORONTO, ONTARIO -- (Marketwire) -- 02/13/13 -- The groundhog recently predicted an early spring, and so it is for homebuyers looking for advantageous mortgage rates this month. Despite increasing Government of Canada bond yields, a slowing housing market prompts lenders to take competitive measures to gain mortgage business, leading to no movement for fixed mortgage rates. Variable mortgage rates are also expected to remain unchanged this month, as the Bank of Canada did not introduce rate changes in the January 23rd announcement.
Fixed Mortgage Rates: Unchanged
While Government of Canada bond yields have increased over the past month, a development that would usually prompt a hike for fixed mortgage rates, lenders are keeping mortgage rates low in order to remain competitive as Canada's housing market sales continue to decline.
Variable Mortgage Rates: Unchanged
As the Bank of Canada did not increase the Overnight Lending Rate last month, market conditions for variable mortgage rates will remain stagnant. However, as consumer debt levels remain at record highs and global economic uncertainty lingers, an interest rate increase is not expected until late 2013 or 2014.
About the Mortgage Rate Outlook Panel
The Panel includes some of the country's top mortgage experts, and helps Canadian consumers make informed decisions by offering a short-term outlook for fixed and variable mortgage rates.
This month's panel members:
Dan Eisner, MBA. AMP. President, True North MortgageElisseos Iriotakis, President, Safebridge FinancialMark Kocaurek, Senior Vice President, ING DirectDr. Ian Lee, Director of the MBA program at the Sprott School of Business and Chair of the MBA CommitteeMary Zenar, Mortgage Broker, Zenar Financial
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