When Will Mortgage Rates Drop?
Today reviewing data that is available reveals unexpectedly high unemployment rates in both Canada and the US, following a trend of weaker economic indicators that suggest decelerating growth. As a result of these signs and a change in central bankers' rhetoric, there's been a notable change in the financial markets' expectations regarding interest rates. The likelihood of further rate increases is now nearly nil, with predictions of rate cuts emerging for the early part of the coming year. The 5-year Government of Canada bond yield has fallen to approximately 3.8% from about 4.3% two weeks earlier, signaling that the period of increasing rates may be concluding. Here's to hoping that's the case! Enjoy your weekend!
- Paul Uffelmann, Director, Capital Markets - First National Financial LP