Canada’s big banks lowered the typical 5-year posted bank rate by 0.05% on Monday. It currently stands at 6.45%. (Of course, mortgage brokers will offer you a lot better than 6.45%)
The CMHC now predicts 5-year mortgage rates will drop to 6.4% by the 2nd quarter of 2007, and then rise again in the 4th quarter (Source: Globe and Mail).
This essentially suggests that rates will remain unchanged for a while. We’d be surprised if rates remained this static, but guessing the direction of interest rates is like flipping a coin.
By the way, if you’ve ever wondered how well professional economists can predict mortgage rates, here’s a good article. Studies have repeatedly shown that your average red headed woodpecker forecasts interest rates better than the typical economist.
Last modified: December 13, 2006
Economists are one of the only professions that get paid well for being wrong.
As my mortgage cancellation fee is based on a formula which uses my discount from posted rates given in 2005, I need to know what was TD’s posted five year rate on Nov 2, 2005. How can I find out as bank won’t tell me
thanks
dan
Dan 5 year posted was 6.15%.
Similar to Dan’s post above, I need to know what Scotia’s 3 year posted rate was in August, 2007. Can you help?
thanks,
David
Hi David,
I don’t know offhand but you can get 3-year posted rates here (in case this helps):
http://www.bankofcanada.ca/en/rates/interest-look.html
Cheers,
Rob