Click here to join our mailing list to receive the latest news and updates as they happen. Unsubscribe any time.

Rates Flat Till 2011?

interest-rate-news Here are some of the more notable interest rate and housing-related headlines from the past week:

Among the takeaways…

  • CIBC economist, Avery Shenfeld, proclaims: “Canada's inflation rate will be no threat to the Bank easily fulfilling its pledge to keep interest rates at a slim quarter point through mid-2010. In fact, market expectations for rate hikes in the first half of 2010 could be a full year too premature.”
  • Bank of America Securities-Merrill Lynch says it does not expect the Bank of Canada to begin raising rates until 2011.
  • National Bank economist, Marc Pinsonneault, believes mortgage rates won’t rise over the next 12 month by more than 50 to 75 basis points from today’s 5.85% five-year fixed posted rates.

On the housing front…

  • TD economist, Don Drummond, says: “A similar pattern in [the US and Canada] is unmistakably suggesting we’ve not only bottomed in housing, but we’re on the way back up.”
  • BMO Capital Markets economist, Jennifer Lee, agrees, saying: “The housing market has clearly turned the corner.”

As usual, long-range forecasts are fraught with hazards, so the above should be placed under the “For what it’s worth” heading…