The steady increases in mortgage rates got another bump this morning with predictions of more to come. We’re now at a five year record high for rates:
A flurry of increases in the past month has sent Canadian mortgage rates to their highest level in more than five years, and consumers shouldn’t expect a return to the low interest rates they enjoyed in the first half of the decade.
Interest rate hikes by the Bank of Canada to curb inflation, coupled with a slowdown in China’s economy, are likely to snap the country out of the falling interest rate environment it has been in since 2001, said Benjamin Tal, senior economist at CIBC World Markets.
Canada’s chartered banks are already pricing in rate hikes the Bank of Canada is expected to make later this year. Royal Bank of Canada has raised the posted rate for a five-year, fixed mortgage to 7.44 per cent, the highest since April, 2002.