The latest report from Stats Can says inflation is at its lowest in 56 years!
prices actually declined by 0.9% last month. Much of this decline is attributable to lower gas prices off 40 cents a litre on avergage since last July's high of $1.37/litre, but the core inflation rate is staill at a very comfortable 1.8%.
Read more: http://www.globeinvestor.com/servlet/story/RTGAM.20090819.wcpi0819/GIStory/
What does this mean for mortgage interest rates?
Well the BoC uses a 2.0% core inflation rate, so 1.8% indicates that Mr. Carney will be sticking to his no increase policy. There has also been a drop in the 5 year bond yields on this news to 2.49%, which means that some lenders may look at easing their fixed rates from the current 4.29% to maybe the 4% or lower range. These will most likely be the non-bank lenders so you'll want to make sure your mortgage broker is on the ball for you!
http://www.peterlmckinnon.com
peter_mckinnon@centum.ca
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment