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Mortgage rates made new 5-year highs yesterday, rising for the 3rd time in three weeks. The big banks’ posted rates are now as high as 7.29%, up 0.70% since May 17. CBC story
Rob Carrick from the Globe & Mail proclaims, “The golden age of variable-rate mortgages is over.” He cites economists that forecast a 6.5% to 7% prime rate within one year. That implies variable rates will rise to about 5.65% to 6.15%.
CIBC economist Benjamin Tal, who a few months ago felt mortgage rates would remain low, now says, “Locking in now would not be a mistake. In fact, it could be a good thing.” Globe & Mail Story
Many “experts” believe the Bank of Canada will raise rates 1/4% on July 10 to combat what the BofC calls “excess demand” in our economy.