Do REIN members here believe the BOC rate will migrate back to it`s 10 year average of 5% any time soon?
QUOTE (tninvestor @ Mar 21 2010, 11:13 PM) I just went to the TD bank yesterday Mar 20. They offer 5yrs fixed at 3.65%, but the closed variable is only prime - 0.15. If you can get it for 3.65% is good to go.
QUOTE (tninvestor @ Mar 21 2010, 11:13 PM) I just went to the TD bank yesterday Mar 20. They offer 5yrs fixed at 3.65%, but the closed variable is only prime - 0.15. If you can get it for 3.65% is good to go.
QUOTE (housingrental @ Mar 23 2010, 11:13 AM) I do in 2-3 years
I think a lot of it will rely on how fast the U.S. economy bounces back. If we raise our interest rates, the Canadian dollar will become more powerful than the us dollar. (Sounds great for x boarder shopping, but would be terrible for our economy) The issue is our exports and manufacturing sector will hurt. (Oil in Alberta, Automotive, Mining etc.)
I see rates staying low for many years. (At least historically speaking) Rates will rise, but I think that variable is the way to go still! Rates will move up in the near term, but I doubt they will continue to move up. (If they do, it will be a great time to get your fancy cars from the US)
I think a lot of it will rely on how fast the U.S. economy bounces back. If we raise our interest rates, the Canadian dollar will become more powerful than the us dollar. (Sounds great for x boarder shopping, but would be terrible for our economy) The issue is our exports and manufacturing sector will hurt. (Oil in Alberta, Automotive, Mining etc.)
I see rates staying low for many years. (At least historically speaking) Rates will rise, but I think that variable is the way to go still! Rates will move up in the near term, but I doubt they will continue to move up. (If they do, it will be a great time to get your fancy cars from the US)
QUOTE (JamesB @ Mar 25 2010, 08:06 AM) I think a lot of it will rely on how fast the U.S. economy bounces back. If we raise our interest rates, the Canadian dollar will become more powerful than the us dollar. (Sounds great for x boarder shopping, but would be terrible for our economy) The issue is our exports and manufacturing sector will hurt. (Oil in Alberta, Automotive, Mining etc.)
I see rates staying low for many years. (At least historically speaking) Rates will rise, but I think that variable is the way to go still! Rates will move up in the near term, but I doubt they will continue to move up. (If they do, it will be a great time to get your fancy cars from the US)
I share this view 100% !
Economies are still way too fragile in US and also in Canada for any significant BofC prime rate moves .. and still so much money on the sidelines that even 5 or 10 year rates will remain fairly low !
Also keep an eye on the US-China relationship that will probably turn uglier due to allegations of "currency manipulations", "product dumping", "environmental pollution" .. so I expect the US to tighten severely the imports by China into the US and thus, slower worldwide growth, thus more sluggish Canada economy too .. thus: continued low interest rates !!!!
I see rates staying low for many years. (At least historically speaking) Rates will rise, but I think that variable is the way to go still! Rates will move up in the near term, but I doubt they will continue to move up. (If they do, it will be a great time to get your fancy cars from the US)
I share this view 100% !
Economies are still way too fragile in US and also in Canada for any significant BofC prime rate moves .. and still so much money on the sidelines that even 5 or 10 year rates will remain fairly low !
Also keep an eye on the US-China relationship that will probably turn uglier due to allegations of "currency manipulations", "product dumping", "environmental pollution" .. so I expect the US to tighten severely the imports by China into the US and thus, slower worldwide growth, thus more sluggish Canada economy too .. thus: continued low interest rates !!!!
Agreed!
I bet we get a .25 increase in July because there`s so much pressure on Mark Carney because of his deadline. Then maybe another .25 in the fall. Then that`s it for say six months or more as they sit back and see what the impact has been.
QUOTE (ThomasBeyer @ Mar 25 2010, 10:38 AM) I share this view 100% !
Economies are still way too fragile in US and also in Canada for any significant BofC prime rate moves .. and still so much money on the sidelines that even 5 or 10 year rates will remain fairly low !
Also keep an eye on the US-China relationship that will probably turn uglier due to allegations of "currency manipulations", "product dumping", "environmental pollution" .. so I expect the US to tighten severely the imports by China into the US and thus, slower worldwide growth, thus more sluggish Canada economy too .. thus: continued low interest rates !!!!
I bet we get a .25 increase in July because there`s so much pressure on Mark Carney because of his deadline. Then maybe another .25 in the fall. Then that`s it for say six months or more as they sit back and see what the impact has been.
QUOTE (ThomasBeyer @ Mar 25 2010, 10:38 AM) I share this view 100% !
Economies are still way too fragile in US and also in Canada for any significant BofC prime rate moves .. and still so much money on the sidelines that even 5 or 10 year rates will remain fairly low !
Also keep an eye on the US-China relationship that will probably turn uglier due to allegations of "currency manipulations", "product dumping", "environmental pollution" .. so I expect the US to tighten severely the imports by China into the US and thus, slower worldwide growth, thus more sluggish Canada economy too .. thus: continued low interest rates !!!!
QUOTE (mortgageman @ Mar 27 2010, 02:08 AM) Agreed!
I bet we get a .25 increase in July because there`s so much pressure on Mark Carney because of his deadline. Then maybe another .25 in the fall. Then that`s it for say six months or more as they sit back and see what the impact has been.
My bet would be .25 this summer and .50 in the fall. (To scare people a little more) This will be followed by a .25 reduction.
I think we should be taking bets!
I bet we get a .25 increase in July because there`s so much pressure on Mark Carney because of his deadline. Then maybe another .25 in the fall. Then that`s it for say six months or more as they sit back and see what the impact has been.
My bet would be .25 this summer and .50 in the fall. (To scare people a little more) This will be followed by a .25 reduction.
I think we should be taking bets!
The fixed rates in Canada work independantly to the prime rate. The fixed rates are based on the pricing in the bond market. So when the price on 5 year gov`t of Canada bonds increase and the spread narrows, eventually the banks will increase the rates.
The spread got very low a few weeks ago and their was an expected increase. The banks held their rates. The spread continued to narrow and they made a big move.
There are still a few banks and local credit unions that haven`t moved their rates, so you`ve still got some time.
The spread got very low a few weeks ago and their was an expected increase. The banks held their rates. The spread continued to narrow and they made a big move.
There are still a few banks and local credit unions that haven`t moved their rates, so you`ve still got some time.