Mortgage Digest: 50% odds of a 50-bps October rate cut, experts say + MORE Oct 4th
Housing starts up in six largest cities but construction still not closing supply gap + MORE Sep 28th
Buying a second home: How it works in Canada + MORE Sep 25th
Breaking a mortgage for better rates can pay off – but beware of the costs + MORE Oct 7th
Mortgage rate war intensifies as rates dip below 4%
– canadianmortgagetrends.com
10 up and 3 down, unintended consequences!
– canadamortgagenews.ca
LOTS OF MOVEMENT IN MORTGAGE RATES
Sounds like a football play. But I’m not talking about football even though the NFL season just started and my Buffalo Bills won their first two games. I’m referring to how many times the Bank of Canada’s (BoC) Governor, Tiff Macklem, has changed the Overnight rate since March 2022.
Did you know we saw 10 rate hikes totaling 4.75% in just 16 months from March 2022 to July 2023? That’s never happened before. And most of those rate hikes
were also extraordinarily high. The BoC increased the Overnight rate 4 times by the usual 0.25% change. They also increased it another 4 times by 0.50%, and again by a whopping 0.75% and finally once more by an incredible 1.00%.
Now let’s get to the good news. Fast forward to the summer of 2024. We’ve had 3 consecutive rate cuts by the Bank of Canada beginning in June. Our current Bank rate is 4.25%, down from 5.00%. The Bank Prime lending rate is now 6…
