What are today’s mortgage interest rate trends? The answer depends in large part on who you talk to and when you talk to them.
When the economy is in recovery mode after a recession and the unemployment rate remains high, economic news varies from month to month. And with current interest rates at historic lows, the question on most people’s minds is: Where are rates headed?
The assessment of interest rate trends can vary greatly, depending on a number of factors – the strength of the Canadian dollar, new home sales, house prices, and employment data.
In recent months, these factors have been shifting like sand. Home sales were down, but prices stayed high. Unemployment is still above 8%. The dollar is strong, but with less demand for Canadian goods in the still-struggling American economy, the high dollar is actually detracting from our recovery.
Given the frequent changes in economic indicators, it is no wonder that even the experts cannot agree on what the future holds.
Will interest rates go up in the short-term? Many economists think so. Others believe that the best strategy for the Bank of Canada is to hold interest rates low to help the economy. Still others believe that the time has come to end the Bank’s “zero-rate” policy, for the good of the country.
As a consumer, what should you think?
For homeowners, all of this talk about interest rates comes down to one issue: deciding between a fixed and variable mortgage rate. A fixed rate offers security, especially in times where fluctuations are likely to occur. On the other hand, a variable rate is lower than a fixed rate and enables homeowners to immediately reap the benefits of decreases in interest rates.
Regardless of the state of the economy, the choice between fixed and variable rates is one that takes a lot of thought. The certified mortgage brokers at CMI can help you make this often difficult decision.
We offer free consultations to discuss all aspects of your mortgage, whether you are seeking a new mortgage, renewing a mortgage, or looking to refinance or take out a home equity loan or line of credit.
We stay on top of today’s mortgage interest rate trends so that we can give you the advice you need to make an informed decision.