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Mortgage Rate Forecast (March 2017)


Blog by Tammy Sharp - Personal Real Estate Corporation | March 16th, 2017


MORTGAGE RATES EXPECTED TO RISE IN SECOND HALF OF 2017

From the BC Real Estate Association, March 2017

Mar 2017 report highlights.JPG

Mortgage Rate Outlook

After an initial upward adjustment in global interest rates following the US presidential election, bond markets have since adopted a wait and see approach to US economic policy. As a result, the yield on the benchmark five-year bond has stayed constant through the first quarter of the year. Consequently, Canadian mortgage rates have also remained relatively unchanged. However, we could see some upward movement in interest rates over the second half of 2017, due to a stronger Canadian economy and a large degree of policy incoherence in the United States.

MORTG RATE FORECAST Mar 17.JPG

The average five-year mortgage rate offered by lenders at a discount to the posted rate moved
higher toward the end of 2016, but has softened slightly heading into the always important spring season. We expect rates to remain somewhat stable over the first half of 2017 before rising by as much as 20 basis points toward the end of the year, as markets gain clarity on the direction of US policy.

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