Rates Moving Up…Again

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.