Will Rates Go Up In The Fall?
Rates going up in the fall? Well probably…maybe…depends…
The U.S. Federal Reserve gave it's clearest indication that rates will start to go up in September. What happens in the U.S. usually trickles over to Canada but with that being said they also stressed that rates will "probably" or "maybe" start to go up and that it "depends" on a number of things. Will this be the time when rates do start going up? Only time will tell. We've had plenty of false alarms over the past few years.
Check out lender, First National's, market commentary for more details on this subject:
"Given the close ties between the Canadian and American economies it is little wonder market watchers were paying very close attention to the latest musings from the U.S. Federal Reserve. It is also little wonder that what they heard created quite a flutter, even though nothing actually happened.
Fed chair Janet Yellen has given the clearest signal yet that interest rates will be going up and the clearest projection is that it will happen in September … probably … maybe … depends. It could be December or even next March. From the U.S. perspective employment growth is a key concern.
For Canadian mortgage holders when is not critical. How much and how many – "the entire path of rates", as Yellen put it – are what matter. On that point Yellen says the Fed is projecting increases of 100 basis points a year until rates normalize (likely in 25 bps increments).
Canadians contemplating long-term mortgages need to be aware that the U.S. increases, whenever they start, will likely move across the border."