Are Mortgage Rates Heading Lower in February 2010?

RateSupermarket.ca's panel of financial gurus believe we could possibly see lower fixed mortgage rates and bigger variable rate discounts to prime

TORONTO, Feb. 4 /CNW/ - RateSupermarket.ca, Canada's rate comparison website for personal finance products such as mortgages and insurance, has announced the results of their Mortgage Rate Outlook Panel for February 2010.

The results of this month's mortgage rate outlook tell a divided story. 43% of panel members expect fixed mortgage rates to slightly decrease this month, while the same percent believe that fixed rates will stay where they are. Variable mortgage rates are expected to remain unchanged for the month.

Fixed rates: Unchanged or slight decrease

The mortgage market has seen a strong start to 2010 as consumers scramble to secure low rates before an expected interest rate hike in the second half of the year. As lenders fight for market share fixed rates could drop a few basis points over the coming weeks - but it will be short lived, so keep your eyes peeled.

Panel members who believe fixed rates are likely to remain unchanged cite a weak US dollar and stronger than expected figures for recent economic growth; hence, the slight decrease in bond yields over the past month are unlikely to be passed on by lenders.

Variable rates: Unchanged

The majority of our panel members (80%) still believe that variable mortgage rates will remain unchanged in the short term. The Bank of Canada has been quite clear about maintaining the current overnight rate in the first half of 2010, subject to inflation. Also, interest rate changes prior to the federal budget on March 4th are extremely unlikely. Although no decrease to the interest rate is expected, a few of our industry experts believe that lenders will boost discounts on prime, resulting in lower variable rates.

To read detailed commentary from our panel members, please visit: www.ratesupermarket.ca/mortgage_rate_outlook_panel/

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, Verico True North Mortgage
    -   George Hugh, Vice President, Treasury, ING DIRECT
    -   Elisseos Iriotakis, President, SAFEBRIDGE Financial
    -   Gregory Klump, Chief Economist, Canadian Real Estate Association
        (CREA)
    -   Dr. Ian Lee, Director of MBA Program, Sprott School of Business,
        Carleton University
    -   Rob McLister, Editor, CanadianMortgageTrends.com
    -   Garth Turner, Noted Canadian Author, Columnist, Speaker and Financial
        Commentator, Former MP
    

About RateSupermarket.ca (www.ratesupermarket.ca)

RateSupermarket.ca is an independent, impartial resource that is not affiliated with any mortgage lender or broker. It is the only resource in Canada that allows visitors to compare the whole mortgage market in the country. RateSupermarket.ca also compares car insurance, home insurance, condo/tenant insurance, life insurance and credit cards.

SOURCE RateSupermarket.ca

For further information: For further information: Kelvin Mangaroo, Ratesupermarket.ca, Cell: (416) 844-2931, Kelvin@RateSupermarket.ca, www.ratesupermarket.ca


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