Why We Know: Prime should stay the same for 2012 @ 3%

Below is a sample of a very boring statement about a prediction on why Prime should stay at 3% for the rest of 2012. Prime and fixed rates “tend” to move together but not always and fixed rates went up on March 27th due to other factors. 

All this really says is …. let us watch this “raw mortgage data” for you. This is all we do all day and why we are able to give you the best, unbiased advice on mortgages we can.

Canadian business sentiment brightens: BoC survey

Mon Apr 9, 2012 2:26pm EDT

By Louise Egan

OTTAWA (Reuters) – Canadian business sentiment on future sales rose to its highest level in two years in the first quarter, and companies also expect to increase investment and hire more staff, the Bank of Canada’s spring survey showed on Monday. Read More

Mortgage Market Commentary

Mortgage Market Commentary:

With the federal budget fading into the past the question, as always, becomes “what’s next”. The answer seems to be focused on “interest rates”. It seems inevitable that they will rise from their current historic lows. So the next question become: when, by how much, how fast and – given the ongoing concerns about household debt – what will happen. Read More

Mortgage interest rates are poised to increase as soon as this summer.

If the banks aren’t prepared to put the brakes on rising mortgage debt, the Bank of Canada may soon be, hinting that it could raise its key overnight rate as soon as this summer.

“The heightened uncertainty around the global economic outlook has decreased in the weeks since the Bank released its January Monetary Policy Report (MPR),” reads Thursday’s announcement maintaining the Central Bank’s benchmark rate at 1 per cent. “With tentative signs of stabilization in European bank funding and sovereign debt markets, conditions in global financial markets have improved and risk aversion has decreased.” Read More