After yesterdays Bank of Canada rate cut we’re seeing lots of articles about what this means for the housing market.
Reasonably enough economists are predicting a dip in mortgage rates after this cut, but so far the big banks don’t seem to be in a hurry.
However, TD Bank was quick to announce Wednesday it will maintain its prime interest rate at three per cent, noting that factors beyond the central bank influence its rates.
“Not only do we operate in a competitive environment, but our prime rate is influenced by the broader economic environment, and its impact on credit,” the bank said in a statement.
And the Royal Bank appeared in no hurry to drop rates either, saying in an email response to a query that “while we don’t have any product announcements to make at this time, we are considering the impact of today’s Bank of Canada decision.”
It was anticipated that the Bank of Canada would move to increase its overnight rate later this year due to an improving economy, until crude prices started to slide and dropped below US$50 a barrel.
Phil Soper, president of realtor Royal LePage, predicted Canadians could be shopping for cheaper mortgages within days.
“It doesn’t take long to react to a policy change like this,” Soper said. “That’s why it’s such a powerful tool.”
Read the full article over at Yahoo.