As expected, the Bank of Canada held the Overnight Lending Rate untouched at 1 percent, the longest period of rate stability since the early 1950s.
The Bank noted that the Canadian and U.S. economies are on a path of growth – even though it’s at a “gradual pace”. But the modest upside is weighed against the impending U.S. “fiscal cliff”, the “continued contraction” in Europe, and slower than expected growth in China and other emerging economies. All of this means that the low rates here continue to be a plus for homeowners, homebuyers, and sellers too.
For now, it seems that Variable Rate mortgages continue to offer a “win” as long as you’re a rate-watcher for when things change… as they inevitably will.
Article credit to Kits Communications