On Tuesday, June 10th 2008 the Bank of Canada announced it’s decision to leave its target for the overnight lending rate at 3% and the bank lending rate at 3.25%. The Bank surprised most observers by leaving rates unchanged and cited concerns about rising inflation for this change in it’s policy (find the full press release here).
An article in the Globe and Mail (read the article here) today discussed the issue. Not only are mortgage interest rates expected to rise due to the shift in the Bank of Canada policy, but also because of the predicted rise in inflation. However, mortgage brokers interviewed in the article foresee only “modest” rises in the mortgage rates offered by banks to consumers.
CBC is reporting that on June 11th, 2008 banks are already making the move to raise interest rates (read the article here). Rates increased by as much as 0.5% for a posted five year rate.
Sebastian Albrecht, Vancouver Realtor with Royal LePage Westside
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