AGENT LICENSE ID
SB 140187
Robert Mogensen
Mortgage Consultant, AMP
Office:
Phone:
Email:
Address:
560 - 171 West Esplanade, North Vancouver, British Columbia
Mortgage Market Commentary
1/24/2014
Mortgage rates continue to be a major question for those looking to buy a home. Concerns about rising rates linger and there appear to be mixed signals coming from the Bank of Canada. The central bank has made it clear it is unlikely to raise its benchmark overnight rate until next year. There is even some, growing, speculation the conditions could develop that would warrant a cut in that rate. But Governor Stephen Poloz may have created some confusion in a recent television interview when he talked about an increase in long-term rates.
There are two key issues controlling interest rates right now: inflation and unemployment. The BC is very focused on Canada's persistently low inflation rate and that is why the overnight rate is unlikely to increase. It would stifle spending. The country's slow job growth affects bond rates. The disappointing job numbers in December saw Government of Canada bond yields take a tumble and some mortgage lenders are responding with rate cuts.
So it appears low rates remain the norm for the moment, barring any major,unforeseen circumstances. But even if long-term rates start to trend upward, as Governor Poloz suggests, that trend will be long, slow and measured.
There are two key issues controlling interest rates right now: inflation and unemployment. The BC is very focused on Canada's persistently low inflation rate and that is why the overnight rate is unlikely to increase. It would stifle spending. The country's slow job growth affects bond rates. The disappointing job numbers in December saw Government of Canada bond yields take a tumble and some mortgage lenders are responding with rate cuts.
So it appears low rates remain the norm for the moment, barring any major,unforeseen circumstances. But even if long-term rates start to trend upward, as Governor Poloz suggests, that trend will be long, slow and measured.
