TORONTO, ONTARIO -- (Marketwire) -- 03/11/13 -- March may signal rising temperatures, but the same cannot be said for fixed and variable mortgage rates as Canadian economic factors show only sluggish improvement. While BMO has reintroduced its discounted 2.99% mortgage, broker rates have remained below 2.80% for weeks, and a slower than usual housing market will counter the typically hot spring mortgage season. While bond yields have seen a slight downturn over the past month, it is anticipated that they're to remain close to current levels, leading to no significant movement for fixed mortgage rates. Slow economic progress has also prompted the Bank of Canada to maintain its interest rate, leading to no change for the time being for variable mortgage rates.
Fixed Mortgage Rates: Unchanged
Though spring usually signals a heating mortgage market, the effects of last summer's CMHC mortgage rule changes are still taking hold. The housing market is expected to remain soft throughout the spring season, and while bond yields have experienced a slight downturn, fixed mortgage rates are not anticipated to move from their already record-low levels in March.
Variable Mortgage Rates: Unchanged
A combination of slow national and global economic growth has prompted the Bank of Canada to maintain its Overnight Lending Rate at 1% in its March 6th announcement, with no upward movement anticipated until early 2014. Therefore, variable mortgage rates are to remain unchanged for the foreseeable future.
About the Mortgage Rate Outlook Panel
The Panel includes some of the country's top mortgage experts, and helps consumers make informed decisions by offering a short-term outlook for fixed and variable mortgage rates in Canada.
This month's panel members:
-- Mark Kocaurek, Senior Vice President, ING DIRECT-- Dr. Ian Lee, Director of MBA Program, Sprott School of Business, Carleton University-- George Hugh, AMP, President and CEO, Taurus Mortgage Capital-- Dan Eisner, President, True North Mortgages
To read all the detailed commentary from our Panel Members, please visit:
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