2014 Mortgage Rate Forecast

BCREA has just issued their Mortgage Rate Forecast for 2014.

The highlights of the report include:
  • No "taper" prompts long-term rates to fall
  • Canadian economy gains momentum
  • Bank of Canada to remain on hold through 2014
Posted Canadian mortgage rates were relatively stable during the fourth quarter in spite of wide fluctuations in Canadian bond yields. However, discounted mortgage rates have risen 40 basis points since the summer from a low of 4 per cent as rising Canadian bond yields eroded previous deep discounts.

Stronger growth in the US economy will also put upward pressure on long-term yields, lessening some of the urgency for monetary tightening. For that reason, we expect that eventual Bank of Canada tightening will occur very slowly in 2015, with a 25 to 50 basis point increase in the Bank’s overnight rate over the course of the year.

Ask me about introducing you to a highly professional mortgage broker and get the detail behind the story.

For a copy of the complete news release, click here.

My business grows by building strong client focused relationships. I would welcome the opportunity to answer any questions about the real estate market that you may have.

If you would like to find out how much your home is worth in today's market, to discuss listing your home or buying a new home, please contact me on 604.781.5692 or via email - tim@timwray.ca