RateSupermarket.ca expert panel says sliding oil prices will counter any potential central rate movement
TORONTO, Jan. 7, 2015 /CNW/ - The new year is upon us, but 2014's mortgage rate pricing remains frozen at record lows. Flat bond yields mean brokers and lenders continue to offer competitively discounted options for winter home buyers and renewals, dipping as low as 2.69 per cent for five-year terms.
Meanwhile, the Bank of Canada remains firm in their "wait-and-see" approach; positive American economic gains won't prompt a rate rise north of the border as the impact of sliding energy prices acutely affects economic growth.
Fixed Mortgage Rates: Unchanged: Government of Canada bonds remain in high demand among investors, even as oil prices slide and the Loonie weakens. Yields remain low, giving lenders the room to cut fixed mortgage rate pricing. This affordable trend will remain in tandem with positive investor sentiment.
Variable Mortgage Rates: Unchanged: It has been widely expected that Canadian central rates would take their cues from American monetary policy - but the drop in oil has thrown a wrench into such forecasts. While increasingly positive U.S. economic conditions mean rates could rise there sooner than expected, the Bank of Canada will stick to status quo until oil's impact and inflationary risks have moderated.
This month's panel members:
Click here to read the full Mortgage Rate Outlook Panel.
About RateSupermarket.ca ( www.ratesupermarket.ca )
Over 7 million Canadians have found their best rate for personal finance products on RateSupermarket.ca. Launched in 2008, RateSupermarket.ca is Canada's most comprehensive rate comparison site, offering visitors transparent access to the best mortgage rates as well as credit cards, bank accounts, insurance quotes and GIC rates.
SOURCE RateSupermarket.ca
Image with caption: "RateSupermarket.ca (CNW Group/RateSupermarket.ca)". Image available at: http://photos.newswire.ca/images/download/20150107_C2621_PHOTO_EN_9956.jpg
Penelope Graham, RateSupermarket.ca, p: 416-551-9445 ext 515, e: [email protected]
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