With significant uncertainty with the global economy, the overnight (Bank of Canada rate) is expected to remain low. But fixed rates have different influences.
For bond yields, thus fixed rates, to remain low, to global market needs to have comfort and confidence in Canadian Banks, the Canadian Dollar and in general the Canadian Economy. If any of those three things become “risky”, bonds will be sold and yields, thus rates will rise.
We keep our pulse on the news feeds so we can advise our clients correctly. Just one of the ways we help our clients save money over the life of their mortgage.
Photo: Greg Viger – International Ridge looking West over Cultus Lake, Yarrow, Fraser Valley to coastal mountains. July 2016