TORONTO, ONTARIO — (Marketwired) — 07/16/13 — The effects of sky high bond yields are resounding in mortgage markets across Canada as lenders respond to interest-shy investors with a hike to – an upward trend far from the “race to the bottom” fixed rate wars prevalent only a few months ago. Variable mortgage rates, however, will uphold the status quo as no change is anticipated in the upcoming Bank of Canada rate and monetary policy announcement on July 17.
Fixed Mortgage Rates: Up
Bond investors are still reeling from U.S. Federal Reserve Chairman Ben Bernanke-s comments of scaling back the government bond buying program. Fear of rising interest rates prompted a mass exodus from bonds, driving yields up in international markets. As a result, Canadian have increased from their previous record lows, with some offerings broaching the 3 per cent mark.
Variable Mortgage Rates: Unchanged
While incoming Bank of Canada Governor Stephen Poloz has indicated that are to rise eventually, the Canadian economy has not seen enough progress to prompt an end to stimulus measures. It is not anticipated that the Overnight Lending Rate will rise in this month-s announcement, and is to remain at the current level of one per cent until 2014.
This month-s panel members:
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