What Are Interest Rates doing Now?

So, what are interest rates doing now? Well we have been in a similar economic climate since 2010 but many home buyers are wondering what’s ahead of them and hoping no news is good news. With interest rates being as low as they are now, for as long as they have been, this has given Canadians consumer confidence, which means that consumer spending is high and has been for 2 years. This confidence has been helped by the Harper government in 2 ways; the stimulus spending package that keeps businesses busy and by tweaking credit guidelines which helps Canadians to be fiscally responsible. To reinforce this opinion, Ernst and Young have suggested that they expect 2012 holiday spending to increase by 3.5% over last year. We know that our Canadian interest rates are in the hands of Bank of Canada governor Mark Carney and he has recently indicated that the interest are not likely to move until late 2013 or early 2014. One of the indicators that he watches is the inflation rate, which is currently very manageable, at a rate of 1.2%. Mr Carneys benchmark of 2.5% inflation is more than double the current inflation rate and would have to be reached before influencing an interest rate increase. Mr. Carney has also said that Canadas economy is no longer in recovery stage, but has been in expansion for months, indicating that our current economic strategies are working well. So what can home owners and home buyers expect? It seems like record low interest rates for at least another year or more – a great time to get into a new mortgage and a new home!
If you would like to discuss mortgages or home buying further, then contact me by phone or email.

Grant Ostapowich

Grant Ostapowich

REALTORĀ®
CENTURY 21 Fusion
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