Mortgage, Money and Dream – Our thoughts on Canadian Mortgage Market
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No one thinks that BoC is going to show any sign of movement tomorrow. We are going to see the stand still overnight rate for a while.

Not only the low bond yield but also the long term promise of low short term rate also ticks the lenders to keep offering low mortgage interest rate.

Canadian 5 years bond yield - April 2013

Let us now see what the experts think about future of Canadian overnight rate.

Bank of Canada rate outlook

According to the forecasts from big five banks we have to look into 2014 before we see any change in the rate. It has to be well into 2015 when we may see some noticeable movement.

The collective consensus is that the rates are going up in future. The experts have been agreeing on this one for years now. Thus far rates did not move in any direction though.

Also if you look at overnight index swap rate (sometimes called – Canadian Dealer Offered Rate – CDOR) then it shows no indication that anyone is expecting any change in rate tomorrow.