TORONTO, ONTARIO -- (Marketwired) -- 07/16/13 -- The effects of sky high bond yields are resounding in mortgage markets across Canada as lenders respond to interest-shy investors with a hike to mortgage rates - an upward trend far from the "race to the bottom" fixed rate wars prevalent only a few months ago. Variable mortgage rates, however, will uphold the status quo as no change is anticipated in the upcoming Bank of Canada rate and monetary policy announcement on July 17.
Fixed Mortgage Rates: Up
Bond investors are still reeling from U.S. Federal Reserve Chairman Ben Bernanke's comments of scaling back the government bond buying program. Fear of rising interest rates prompted a mass exodus from bonds, driving yields up in international markets. As a result, Canadian fixed mortgage rates have increased from their previous record lows, with some offerings broaching the 3 per cent mark.
Variable Mortgage Rates: Unchanged
While incoming Bank of Canada Governor Stephen Poloz has indicated that variable mortgage rates are to rise eventually, the Canadian economy has not seen enough progress to prompt an end to stimulus measures. It is not anticipated that the Overnight Lending Rate will rise in this month's announcement, and is to remain at the current level of one per cent until 2014.
This month's panel members:
-- Ron Butler, Mortgage Broker, Verico Butler Mortgage-- 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-- Mary Zenar, Mortgage Broker, Zenar Financial
Click here to read the full Mortgage Rate Outlook Panel.
About RateSupermarket.ca (www.ratesupermarket.ca)
Over 3 Million Canadians have found their best rate for personal finance products on RateSupermarket.ca. Launched in 2008, RateSupermarket.ca is Canada's largest and 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.
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