Despite the Bank of Canada holding interest rates steady, many leading economists expect an increase in the next 2-6 months.
Some forecast a 1/4% hike in July. That’s because Canada’s economy grew at an estimated 3.5% pace in the first quarter, much higher than the Bank of Canada’s 2.5% expectation. Inflation is now at a 4-year high.
As a result, mortgage rates jumped today for the 2nd time in two weeks. Here are the rates as of the close of business today:
- 5-year posted fixed rates at most big banks: ~7.14%
- 5-year fixed rates at MyVMB: 5.2%
- 5-year variable rates at MyVMB: 4.99%
Note, however, that lenders are increasing rates as this is being written. The 5-year at 5.2% will likely jump tomorrow.
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Last modified: April 25, 2014
