Canada mortgage rate to stay low and stable throughout the last quarter of 2012
Analyzing the stats for September and October, Marcus Arkan, CEO of Syndicate Mortgages, hints towards low and stable interest rates throughout Canada Mortgage expert Marcus Arkan, CEO of Syndicate Mortgages, has recently shared the interest rate forecast for last two months of this quarter. Mr. Arkan used the figures and stats from the previous two months of this quarter in order to analyze future trends. According to Mr. Arkan, despite the stricter rules introduced earlier this year, the interest rate will continue to remain low throughout 2012 and well into 2013.
Similar predictions were also made in the latest survey report by Statistics Canada. The said report, which also plays a special role in Mr. Arkan’s analysis, points out the easing inflation pressure on the Canadian economy. It also reports that inflation rate for the month of September stayed at 1.2 % i.e. a two year low. Core inflation rate also remained at 1.3% i.e. considerably lower than what was predicted by the Bank of Canada.
Mr. Arkan also shared some current facts regarding the current economic conditions and their impact on interest rates. He said, “There seems to be an excess capacity in the economy. It will remain stable throughout the last quarter of 2012 and both short-term and long-term interest rates will remain at their current historic low position.”
According to Mr. Arkan, he is not the only one predicting a better economic environment. Mark Carney, Governor of Bank of Canada, has also shared similar views in the Monetary Policy Report. Mr. Carney stated that borrowing costs are not going to hike any time soon. Following this statement, the Bank of Canada also announced that its key interest rate will remain at 1% till the end of 2012.
However, Mr. Arkan suggests that borrowers must not overlook the warning issued by Mr. Carney during the same speech. “Mr. Carney is not wrong in pointing out the volatility that is still out there. While Canada’s economy seems stable, the US and global economy still shows some signs of instability,”he advised.
Syndicate Mortgages Inc.