Following last week’s adjustment in interest rates, several key economic events are approaching that could further influence mortgage rates in Canada. Here’s a closer look at the current landscape and what it might mean for you:
What’s Happening?
Doubling its typical 25-basis-point adjustment, the Bank of Canada lowered its overnight lending rate by 50 basis points last Wednesday, impacting variable-rate mortgages and line of credit rates. Next week, Canada’s economic outlook takes center stage, with a few events that could impact mortgage rates:
- Tiff Macklem’s Triple Speeches: The Bank of Canada Governor is set to speak Monday through Wednesday, potentially signaling future rate moves.
- Canadian GDP Release (Thursday): This report will reveal recent growth, with direct implications for Canadian mortgage rates.
What’s at Stake?
Currently, markets are placing an 85% chance on a 25-basis-point rate cut at the Bank of Canada’s December meeting, signaling continued rate relief for variable rate and line of credit borrowers. If Canadian GDP data is stronger than expected, it could shift market sentiment keeping yields and fixed mortgage rates up.
What Does This Mean for Borrowers?
If your mortgage renewal is approaching in the next six months, reach out for an overview of your options. Starting early can help secure better terms, no matter how rate forecasts shift. Reach out any time to discuss, my number is above and I’m always happy to help.
Data points from MortgageLogic.news Mortgage Memo October 24, 2024
Image Credit: Martin Newhall Unsplash