WONDERING ABOUT THE FUTURE OF INTEREST RATES?
There was no BIG surprise in the Bank of Canada decision last week to hold overnight lending rates at one per cent. This means prime will remain at 3% at least until the next interest rate announcement. It's good news for the real estate market as homeowners, looking to secure a mortgage, are still able to take advantage of near historic rates to buy their dream home.
This is the 12th consecutive time in the banks quarterly announcements that its key-lending rate has gone unchanged. This represents the longest steady rates since the 1950's. The last time the bank raised rates was in September 2010. In its latest announcement it hinted a rate hike could be coming soon. Govenor Mark Carney says, tentative signs of stabilization in European bank funding and sovereign debt markets, conditions in global financial markets have improved and risk aversion has decreased.