INTEREST RATES EXPECTED TO HOLD THROUGH JULY: EXPERTS

A panel of financial experts believes that variable mortgage rates will stay level while fixed mortgage rates could fluctuate slightly through july.

RateSupermarket.ca an independent mortgage rate comparison website, says in the Mortgage Rate Outlook Panel for July 2010 that global economic uncertainty may dampen consumer confidence and cause Canadians additional stress during the summer months, but is also means the Bank of Canada likely would not increase mortgage rates on July 20.
(At press time, on July 20, the Bank of Canada announced it was to raise it's benchmark poilcy rate by 25 basis points to .75 per cent)

FIXED MORTGAGE RATES: UNCHANGED
The panel believes fixed mortgage rates could fluctuate by +/-.10 per cent in July but will effectively stay where they are for the time being.
The Bank of Canada's next Monetary Policy Report is due on July 22, and this should give a better indication of the level of uncertainly in the market. A strong demand for residential mortgages by lenders is also stated as a key driver for keeping fixed rates level.

VARIABLE MORTGAGE RATES: UNCHANGED
The panels also expects the Bank of Canada to sit right at the next interest rate meeting at the end of July. Given an expected dip in Canadian consumer spending, widespread unemployment in the US and Europe, global fears of deflation and debt levels that are threatening to put whole countries out of business, there's just too much going on to justify a rate increae.
In this environment, panel members say, the Bank of Canada would be unlikely to increase interest rates in July, so variable mortgage rates should remain unchanged.

Source: www.hometrader.ca