There are new developments in the ever-changing cycle of interest rates this week as they go on their little bumpy ride into history.
Last Monday, Canada’s largest bank, RBC, increased their five-year fixed interest rate by 0.20%. Which may not seem like a lot, but their current ‘special’ is 3.69%.
While all lenders follow suit on an increase, the average five-year fixed interest rate is hovering between 3.29% and 3.39% increased from 3.09% which stood for well over a month.
There still are some lenders out there with specials in the 3.19% range on quick close deals, and hopefully they stay for some time yet.
As far as reasons, I’d have to say it has to do with some minor positive news down south whereas they’ve increase employment ever so slightly for the month of July.
I can only expect that this is just one more increase in an ever bumpy rate cycle that we are in and I don’t anticipate that they will increase much from here unless there is some major positive news that comes about in the global economy, but currently there are more questions about the state of the markets than anything else.
Regardless, if you are buying in the Alberta economy, you at least have reason to smile, whereas those in B.C. and other parts of the country are feeling not just their summer heat wave, but wondering which direction their economy is going.
Jean-Guy Turcotte is an Accredited Mortgage Professional with Dominion Lending Centres-Regional Mortgage Group and can be contacted by email email@example.com or phone at 403-343-1125.