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March Mortgage Rates Coming In Like a LambRateSupermarket.ca's Expert Mortgage Panel Expects Moderate Increases to Fixed Mortgage Rates and Level Variable Rates Heading Into Spring (March 07, 2012)
TORONTO, ONTARIO -- (Marketwire) -- 03/07/12 -- With the spring real estate season on the horizon and historically low interest rates, the debate on the minds of those preparing for a mortgage is Fixed vs. Variable. Although the Fed has promised to keep their interest rates constant until 2013, in Canada several factors can impact rate fluctuations, though in this market, likely not significantly.
Significant or not, RateSupermarket.ca's Mortgage Rate Outlook Panel is anticipating an increase in Fixed mortgage rates in March, albeit a moderate one. The Panel expects Variable rates to hold steady.
Fixed Mortgage Rates: Up
Since the beginning of February, we've seen bond yield creep up and few lenders have adjusted their rates accordingly.
This month our panel of mortgage experts foresee those increases being passed on in the form of moderately higher fixed mortgage rates.
But not to worry, it's likely that any significant rate increases will be dampened by the prospect of a somber upcoming budget announcement with cuts expected to reach $4-8 billion annually including public servant layoffs. The announcement will likely dampen demand for mortgage funding and further cool down the housing market.
Variable Mortgage Rates
The Bank of Canada meets on Thursday of this week (March 8th) for their next interest rate announcement. Similar to the last 11 rate announcements, experts are not anticipating any change to the key overnight lending rate, and hence variable mortgage rates should remain unchanged.
Moving ahead of the U.S. and increasing our interest rates in Canada would increase the value of the Loonie, which in turn would slow exports and could send Canada into a recession. This is a risk the Bank of Canada is not likely to take.
To read all the detailed commentary from our Panel Members, please visit: http://www.ratesupermarket.ca/mortgage_rate_outlook_panel/.
About the Mortgage Rate Outlook Panel
The Panel includes some of the country's top mortgage experts, and helps Canadian consumers make informed decisions by offering a short-term outlook for fixed and variable mortgage rates.
This month's panel members:
-- Mark Kocaurek, Senior Vice President, Treasury & Lending (Chief Lending Officer) of ING DIRECT Canada -- Dr. Ian Lee, Director of MBA Program, Sprott School of Business, Carleton University -- Wayne Spinney, Mortgage Agent, Centum Mortgage Professionals -- Dan Eisner, MBA. AMP. President, Verico True North Mortgage -- Elisseos Iriotakis, President, Safebridge Financial Group
About RateSupermarket.ca (www.ratesupermarket.ca)
RateSupermarket.ca is the largest impartial rate comparison service for personal finance products in Canada. Founded in May of 2008, their easy to use comparison engine provides much needed transparency to the Canadian financial market and allows visitors to quickly find the best mortgage rates. Their new Mortgage Tool App for the iPhone also allows house hunters to compare mortgage rates using their Smartphone. Over 1.5M Canadians have turned to RateSupermarket.ca to save money on their mortgage, insurance, credit cards and GICs.
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