Mortgage Rates News
RBC ROYAL BANK CHANGES RESIDENTIAL MORTGAGE RATES
TORONTO, March 29, 2010 — RBC Royal Bank announced today that it is changing
its residential mortgage rates effective March 30, 2010.
The changes are as follows:
Fixed Rate Mortgages
Three-year closed 4.35 per cent (increased by 0.20 per cent)
Four-year closed 5.34 per cent (increased by 0.40 per cent)
Five-year closed 5.85 per cent (increased by 0.60 per cent
Bank of Canada Maintains Key Rate at 2.25% The Bank of Canada announced today that it is leaving its key interest rate unchanged, and repeated its commitment to hold the rate steady until the second quarter of 2010, conditional upon inflation.
In its statement the Bank judges that the factors affecting its inflation outlook are “roughly balanced” at this time. “On the upside, the main risks are stronger-than-projected global and domestic demand. On the downside, the main risks are a more protracted global recovery and persistent strength of the Canadian dollar.”
The Bank also noted that “the economy grew at an annual rate of 5 per cent in the fourth quarter of 2009, spurred by vigorous domestic spending and further recovery in exports.”
Pricing for loans that are typically linked to a lender’s prime rate (such as variable-rate mortgages, variable-rate credit cards) is expected to remain unchanged in the wake of today’s announcement. Pricing for fixed-rate mortgages is not directly affected by the Bank’s key rate.
Housing Activity Stronger in 2010
Housing starts rebounded in the second half of 2009 and will strengthen in 2010, according to the Canada Mortgage and Housing Corporation.
Following a total of 149,081 units in 2009, housing starts are expected to be in the range of 152,000 to 189,300 units in 2010, with a point forecast of 171,250 units. In 2011, housing starts will be in the range of 156,400 to 205,600 units, with a point forecast of 175,150 units.
With an improved balance between demand and supply, the average MLS® price is expected to remain close to the average in the last quarter of 2009, for most of 2010, and then rise modestly in 2011.
“Canadian housing markets will benefit from improving economic conditions and low mortgage rates,” said Bob Dugan, Chief Economist for CMHC.