25 February 2014
In the same time, brokers may get a lot of work these days, as homebuyers will be trying to benefit from today’s low rates before the inevitable growth. It should be noted that this report was published after mortgage brokers and one credit union posted their sub-three per cent five year fixed rates. This offer is the lowest for the previous 6 months.
Nevertheless, the Royal Bank expects the overnight rate to stay unchanged this year. This means variable rate mortgage holders shouldn’t worry about their payments, at least till the end of this yaer.
“Though we expect the central bank to keep its overnight rate unchanged in 2014, we predict an increase of bond yields (which affect fixed mortgage rates) before the Fed and the BoC start tightening their policy,” – Wright added.