RateSupermarket.ca's panel of financial experts are torn on the direction of fixed mortgage rates but believe that variable rates will continue to rise
TORONTO, June 7 /CNW/ - RateSupermarket.ca, the go-to website for a complete comparison of mortgage rates in Canada, has announced the results of their Mortgage Rate Outlook Panel for June 2010. Uncertainty is the key word in this month's Outlook as turmoil continues in Europe, dampening the domestic economic recovery.
Fixed mortgage rates: Unchanged
The panel members cited a number of drivers for fixed mortgage rates this month, including a slight dip in consumer spending, strong demand for mortgages by the big banks, and national inflation remaining within a tight band. The result is a split decision, but the common thread is uncertainly within the international markets, justifying a sit and wait approach. The picture should become clearer when the Bank of Canada releases its next Monetary Policy Report on July 22nd.
Variable mortgage rates: Up
Following the Bank of Canada's announcement to increase the target for the overnight lending rate on June 1st, the debate amongst the panel members is whether this is the start of a continuous and steady incline, which was considered a given only a few weeks ago, or if the Bank of Canada will wait to see what happens overseas before making another move.
Consensus is that we'll see another 0.25% increase in July. However, it really depends on Europe - domestically we may need a rate hike, but internationally the fear of a double dip recession is still prevalent.
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
- Elisseos Iriotakis, President, SAFEBRIDGE Financial
- George Hugh, Vice President, Treasury, ING DIRECT
- Gregory Klump, Chief Economist, Canadian Real Estate Association
- Garth Turner, Noted Canadian Author, Columnist, Speaker and Financial
Commentator, Former MP
- Rob McLister, Editor, CanadianMortgageTrends.com
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 insurance products, credit cards and GIC rates.
For further information: For further information: Kelvin Mangaroo, Ratesupermarket.ca, Cell: (416) 844-2931, Kelvin@RateSupermarket.ca, www.ratesupermarket.ca