What is going
on with interest rates?
What
is happening right now is like a roller coaster. Some days we are
on the way up and then we hit the top and a wild crazy ride down makes us
gasp only to hit another climb up. While this may be fun if you are
a thrill seeker, it's not so fun if you have a mortgage decision to make
in the near future.
The market never is a straight line. Fixed mortgage rates are
determined by daily fluctuations in the bond market. The bond
market, like the stock market, reacts to every piece of news causing a
rise or fall in interest rates.
The headline economic news recently and the effect on fixed interest
rates (in brackets):
Jan 25 - Bank of Canada announces rates will not likely to change
until full effect of previous increases take effect (Positive)
Feb 10 - Canada adds 150,000 new jobs in January (Negative)
Feb 14 - US officials hints at further rate increases to bring
inflation down (Negative)
Feb 21 - Inflation cools in January to 5.9% (lower than December), still
above 2% target (Positive)
Feb 23 - Number of Americans filing for unemployment benefits
unexpectedly fall (Negative) Mar 3
– US Federal Reserve indicates raises to their key rate are still coming
in 2023 (Negative) Mar 8
– Bank of Canada holds Bank rate, first time in a year where Canadians
see no increase (Positive)
Summary, there are so many news releases that will continue to have an
impact on short and long term rates that we will continue on the roller coaster
of interest rates until there is more certainty.
Hang on we still have more of the ride to go!
Current
Discounted Mortgage Rates
|
Rates
|
Trend
|
Variable - High Ratio Insured only
|
5.65%
|
↑
|
5 Year Fixed
|
4.84%
|
↓
|
Prime Rate
|
6.70%
|
↑
|
Note: * Rates subject to change and OAC
|
Average Home Price In Winnipeg by Year
|
Jan 2022
|
Jan 2023
|
% Change in Price
|
$353,600
|
$323,600
|
- 8.5%
|
Source
of data: CREA
Questions about your mortgage and interest rates? Contact a One Link Mortgage Broker today!
|