1 yr 2.74 – 3 yr 2.69 – 5 yr 2.94 – VRM 2.65
We got our rate announcement from the Bank of Canada today and they have indicated that they are leaving rates as they are, much to everyone’s expectation. This is great news for everyone in a variable rate mortgage! As well as those with lines of credit or student loans that are tied to prime. There’s no expectation rates will be moving before the end of this year – yay!
In fact, the Bank of Canada can’t see rates really moving until foreign policymakers can get their act together and put policies in place to alleviate the debt crisis in Europe. China is also experiencing some slow down which will have some drag on the global economy.
When things do start to pick up, the Bank of Canada sees it as slow and gradual.
Although we did have a slight up and down with bond yields the last few weeks, it seems that most rates have levelled off and the major lenders are staying away from another major rate war, still recovering from the previous couple bouts. That being said, fixed rates are still really low and there are still a couple specials that offer sub-3% rates for a 5 year term. None of these offers are from a major bank. Very interesting.
The next Bank of Canada announcement is October 23rd and I’ll keep you updated on that yawner too.
Lee Welbanks is a Mortgage Broker with Welbanks Financial Group, Lee will be posting these informative “Market Minutes” each week for you to enjoy. Heard about our awesome new home search tool? We’ve opened up the MLS just for you. Make sure you login to our custom Spring Realty Homefinder Tool and give it a spin! Find us on Facebook and Twitter too!