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Banks Drop Mortgage Rates

Perhaps the hype about increasing mortgage rates was just that…hype.  The end of this week saw major Canadian banks drop their 5-year posted mortgage rate by 10 basis points.  The Royal Bank of Canada, Toronto Dominion, and Bank of Montreal all dropped their 5-year mortgage rate by 10 basis points.  While the Canadian mortgage industry forecasted mortgage rates to increase drastically over the next year, why would this decrease occur?  Monetary policy follows economic conditions…and the economy is not entirely predictable.  With the world stock markets taking a hit over the past few weeks, mortgage rates could not increase anymore.  Put simply, do not believe every forecast you hear, as world markets are very unpredictable.

Posted by Kevin Somnauth, CFA

http://SudburyMortgageBrokers.com, for you Sudbury mortgage.

2 Responses to “Banks Drop Mortgage Rates”

  1. jordans says:

    It’s topics like these that make me sit and ponder – makes me think, “this can’t be true, can it?

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