Interest rates have been steadily increasing over the past few weeks. This should come as no surprise to anyone reading these newsletters. We do anticipate that rates will increase further before slowing down and probably heading back down to lower levels. Royal Bank is increasing their rates tonight, on the back of stronger bond yields which telegraph the mortgage market moves.
The consensus at the major Canadian Banks is for an increase of the prime rate by 2.5% over the next year and a half. Some banks feel that rates will increase faster than others, but the consensus has changed dramatically. It is entertaining that the group that previously believed that we were in the worst recession since the 1930’s; now sees growth from Canada and the United States coming in at record levels.
We don’t scare that easily. Continue reading →