We have kept you informed on recent blog posts of the past Mortgage Rate hikes and although the hikes have been modest I beilieve we will see the roller coster on rates as we have in the past. I don't forsee any significant rate hikes in the near future and if that changes I will keep you informed. Below is an online Globe and Mail article commenting on the recent changes in interest rates.
The Globe and Mail
Published Tuesday, Nov. 24, 2015 4:43PM EST
Last updated Wednesday, Nov. 25, 2015 9:46AM EST
Mortgage rates are on the rise in Canada, a trend that could cool the housing market even as the economy struggles to recover from the effects of low oil prices.
Lenders have already begun boosting their mortgage rates from their September lows. Five-year, fixed-rate mortgages, which represent the largest share of Canadian mortgages, have risen by as much as 20 basis points in the past two months as Canadian government bond yields have moved higher. (A basis point is 1/100th of a percentage point.) Variable-rate mortgages are seeing their first sustained increase since 2012.
While the increases are small, they represent a significant reversal from the trend that has shaped the mortgage market for much of the year. Mortgage rates plunged to historic lows on the heels of two Bank of Canada interest rate cuts in January and July, helping to boost national resale home prices by more than 4 per cent compared with the same period last year.
With the U.S. Federal Reserve widely expected to raise interest rates next month, Canada’s fixed-mortgage rates could rise by another 60 to 70 basis points, estimates Toronto-Dominion Bank economist Diana Petramala. That could drive down national existing-home sales by as much as 10 to 15 per cent over the following six months, based on how the housing market has historically responded to changes in interest rates and the fact that Canadians have become sensitive to even small increases in mortgage payments, she said. ...... Read More
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