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.
Like news like this?
Join our CMT Updates list and get the latest news as it happens. Unsubscribe anytime.
Thank you for subscribing. One more step: Please confirm your subscription via the email sent to you.