Watch this video as Rochelle shares 3 Reasons which suggest the interest rates may be lowered at some point and rate hikes may possibly be done.
Over the last year we’ve seen 7 interest rate hikes, as well as an increase of 4 base points. Everyone’s wondering whether BOC is done raising interest rates?
In this case, we can only make an educated guess on what we can expect.. There are certain signs that indicated that they may be done.
3 Reasons that suggest this are as follows:
- For the first time ever, the Bank of Canada used the language that they are going to assess whether “further rate hikes are required”, whereas previously they always said “further rate hikes are required”
- Impact of Rate Hikes will not be seen immediately except for the increase in mortgage payments. These impacts are likely to be seen in the next 3, 6, or even 9 months down the road. Banks are also working with individuals that are struggling.
- Currently the two-year fixed mortgage rate is higher than the five-year rate, which is very uncommon! This gives people the incentive to lock in at a longer term, which further suggest that interest rates are going to be lowered. at some point.
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Rochelle Appelle
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