RateSupermarket.ca's panel of financial experts expect lower short
term fixed mortgage rates
TORONTO, Aug. 5 /CNW/ - RateSupermarket.ca, Canada's rate comparison
website for personal finance products such as mortgages, insurance,
credit cards and GICs has announced the results of their Mortgage Rate
Outlook Panel for August 2010.
Canadians should expect lower fixed mortgage rates as lenders respond to
dropping bond yields, while variable mortgage rates should increase
following the Bank of Canada's rate announcement at the beginning of
Fixed mortgage rates: Down
The majority of our panel members believe fixed mortgage rates will
decrease in August, and during the first few days of the month we have
already seen this happening. As mortgage lenders react to lower bond
yields, their continued strong demand for residential mortgages is
increasing competition for mortgage customers.
Dr. Ian Lee, Director of MBA Program at Carleton University summarizes
this scenario well: "There is an excess of mortgage funds and lenders
chasing a decreasing number of mortgage borrowers." This increased
competition is likely to be good news for mortgage shoppers resulting in
price cutting and lower fixed mortgage rates.
Variable mortgage rates: Up
Expect variable mortgage rates to remain level in August, but to
increase at the beginning of September following the next Bank of Canada
rate announcement. The Central Bank's most recent Monetary Policy
Report indicates that an increase in the Bank's trend-setting overnight
lending rate in September is likely.
Despite the weak US job numbers and soaring unemployment in most of
Europe, the Bank predicts a gradual reduction in monetary stimulus in
Canada. With only three Bank of Canada meetings remaining till the end
of the year, it is likely that the September announcement will push
interest rates up.
To read all the detailed commentary from our panel members, please
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
Dr. Ian Lee, Director of MBA Program, Sprott School of Business,
George Hugh, Vice President, Treasury, ING DIRECT
Gregory Klump, Chief Economist, Canadian Real Estate Association (CREA)
Garth Turner, Noted Canadian Author, Columnist, Speaker and Financial
Commentator, Former MP
About RateSupermarket.ca href="http://www.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.
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