TORONTO, ONTARIO--(Marketwire - Nov. 13, 2012) - Canada's economic stance is one of caution, as risk of a recession looms globally and action pends on the U.S. fiscal cliff. As a result, there is no anticipated end to stimulus efforts on the home front, with mortgage rates remaining unchanged for the coming month.
Fixed mortgage rates are to remain stable as consistent investor interest in Government of Canada bonds drives yields down. Variable mortgage rates are not expected to change, along with the Bank of Canada's overnight lending rate, in the foreseeable future.
Fixed Mortgage Rates: Unchanged
The Canadian economy's recovery proves to be a moderate one, slowly rebounding from this summer's shrinkage and unchanged job growth. The housing market is also experiencing a seasonal and structural slowdown. However, investors continue their interest in Government of Canada bonds, pushing yields further down, as Europe remains mired in recession woes, with France poised to become the new Greece. As a result, fixed mortgage rates are not anticipated to change over the coming month.
Variable Mortgage Rates: Unchanged
Despite the hovering possibility that interest rates will be raised in order to stem record household debt, the Bank of Canada did not increase its overnight lending rate on October 23, and is not expected to do so in its upcoming December 4 announcement. Coupled with slow economic growth on the Canadian home front, interest rates are expected to remain in stimulus conditions, and variable mortgage rates will therefore not change.
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:
- Mark Kocaurek, Senior Vice President, ING DIRECT
- Ian Lee, Director of the MBA program at the Sprott School of Business and Chair of the MBA Committee
- Mary Zenar, Mortgage Broker, Zenar Financial
- Dan Eisner, MBA. AMP. President, True North Mortgage
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