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Interest Rates Running Up

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 MyVMB5.2%
  • 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.