Posts from the ‘Monday Morning Interest Rate Updates’ Category
Monday Morning Interest Rate Update for January 15, 2018
In today’s post I offer my forecast for five-year variable rates in 2018. At the end of the post I also offer my take on whether five-year fixed or variable rates are likely to offer the lowest cost over the next five years and, more importantly, my take on which is the better option for most borrowers in the current environment.
Monday Morning Interest Rate Update for January 8, 2018
The key question for mortgage borrowers and, more broadly, for real-estate markets across the country (since the majority of Canadians opt for five-year fixed-rate mortgages) is whether rates will rise this year, and if so, by how much.
Monday Morning Interest Rate Update for December 18, 2017
In today’s post, in the spirit of another new year’s tradition, I’m going to poke my neck out further than usual and offer predictions on how I think the impacts from the coming mortgage rule changes will materialize in the new year. (Note: The only certainty with the following predictions is that when you combine them with $1.50 you can buy one cup of hot coffee.)
Monday Morning Interest Rate Update for December 11, 2017
The Bank of Canada (BoC) left its policy rate unchanged last week, as expected. In its accompanying statement the Bank explained how developments both at home and abroad have influenced its overall economic view and today’s post will unpack this brief but detailed assessment by highlighting five key observations for anyone keeping an eye on […]
Monday Morning Interest Rate Update for December 4, 2017
Market watchers missed one very important detail in the latest employment data when they rushed to price in the next Bank of Canada rate hike. Today’s post explains.
Monday Morning Interest Rate Update for November 27, 2017
On January 1, 2018, our regulators will implement a sixth round of mortgage rule changes as part of their ongoing attempts to slow our economy’s rate of mortgage debt accumulation. While I agree in principle with their instincts and with their earlier changes, I take issue with their most recent methodology. For example, in a […]
Monday Morning Interest Rate Update for November 20, 2017
Today’s post explains how Canadian Mortgage Rates are benefiting from our current “inflationary sweet spot”.
Monday Morning Interest Rate Update for November 13, 2017
Today’s post looks at the Canadian mortgage stress-test rate, which has quickly become one of our most important financial benchmarks.
Monday Morning Interest Rate Update for November 6, 2017
The latest employment data have led to speculation that the Bank of Canada may accelerate its rate-hike timetable. I disagree and today’s post explains why.
Monday Morning Interest Rate Update for October 30, 2017
The Bank of Canada (BoC) left its policy rate unchanged last week, as expected. The Bank also sounded more cautious about hiking rates in the near future, and that was somewhat unexpected (at least to market watchers who are not regular readers of this blog).
Monday Morning Interest Rate Update for October 23, 2017
Today’s post outlines the mortgage-rule changes that were announced last week and discusses the implications for Canadian borrowers, mortgage rates and house prices.
Monday Morning Interest Rate Update for October 16, 2017
In today’s post I explain why our policy maker’s efforts to curb our household borrowing rates will also slow overall consumer spending, and most importantly for Canadian mortgage borrowers, why that will keep a lid on both our fixed and variable mortgage rates going forward.
Monday Morning Interest Rate Update for October 10, 2017
We received the latest Canadian employment report, for September, last Friday and while it showed that our rate of job creation slowed, it also confirmed that average wages increased by 2.2% on a year-over-year basis. In today’s post I offer my take on how this latest data might impact both our fixed and variable mortgage rates.
Good News for Variable-Rate Mortgage Borrowers: Governor Poloz Shifts the Bank of Canada Into Neutral … For Now
Monday Morning Interest Rate Update for October 2, 2017
All eyes were on Bank of Canada (BoC) Governor Poloz last Wednesday when he spoke at the Board of Trade in St. John’s, Newfoundland. Market watchers have been debating whether the Bank would now pause, after reversing the two 0.25% rate cuts that it had made in 2015 in response to the oil-price shock, or continue to raise rates to mitigate against the risk of rising inflationary pressures over the medium term. The answer to that key question has important implications for both fixed and variable mortgage rates.
Monday Morning Interest Rate Update for September 25, 2017
Market watchers are currently engaged in a spirited debate about whether the Bank of Canada (BoC) will continue to raise its policy rate in the near future. In last week’s post I explained why the Loonie’s recent movements against a basket of other currencies make more near-term BoC rate rises unlikely, and in today’s post we’ll take a detailed look at the latest inflation data, which I believe further bolsters that view.