{"id":12746,"date":"2019-06-12T10:10:02","date_gmt":"2019-06-12T17:10:02","guid":{"rendered":"http:\/\/www.roryc.ca\/blog\/?p=12746"},"modified":"2019-05-30T09:19:44","modified_gmt":"2019-05-30T16:19:44","slug":"what-interest-rates-on-hold-means-for-mortgages","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2019\/06\/what-interest-rates-on-hold-means-for-mortgages\/","title":{"rendered":"What Interest Rates On Hold Means for Mortgages?"},"content":{"rendered":"<p style=\"text-align: justify;\">The Bank of Canada isn\u2019t budging on its policy rate, at least at the moment, and that\u2019s good news for borrowers.<\/p>\n<p style=\"text-align: justify;\">Canada\u2019s central bank maintained the overnight rate, which influences the variable-rate mortgage market, at 1.75 percent.<\/p>\n<p style=\"text-align: justify;\">In a strong economy the bank will typically hike interest rates, whereas in a weaker one it will lower rates to stimulate spending. Standing on the sidelines matches the Bank of Canada\u2019s recent wait-and-see approach.<\/p>\n<p style=\"text-align: justify;\">\u201cThe oil sector is beginning to recover as production increases and prices remain above recent lows,\u201d reads a statement from the Bank of Canada on the decision.<\/p>\n<p style=\"text-align: justify;\">\u201cMeanwhile, housing market indicators point to a more stable national market, albeit with continued weakness in some regions,\u201d the statement continues.<\/p>\n<p style=\"text-align: justify;\">The Bank of Canada\u2019s decision to stand on the sidelines isn\u2019t surprising.<\/p>\n<p style=\"text-align: justify;\">Between July 2017 and October 2018 the central bank hiked the overnight rate five times as the Canadian economy recovered from a weakened energy sector.<\/p>\n<p style=\"text-align: justify;\">But since the fall it has taken a hands-off approach, particularly in the wake of a weaker-than-expected performance from the Canadian economy in the fourth quarter.<\/p>\n<p style=\"text-align: justify;\">While some expect the central bank to continue on the path of inaction, there are growing calls for a rate cut.<\/p>\n<p style=\"text-align: justify;\">\u201c[W]e think that policymakers are underestimating the extent to which the housing downturn will weigh on economic growth this year,\u201d writes Stephen Brown, the senior Canada economist for Capital Economics, an economic-research firm.<\/p>\n<p style=\"text-align: justify;\">\u201cFirst, although there have been some positive signals from the housing market in recent months, the very low level of new home sales suggests that housing starts will drop sharply in the second half of the year, weighing on residential investment,\u201d he continues.<\/p>\n<p style=\"text-align: justify;\">Capital Economics also expects strong employment growth to peter out.<\/p>\n<p style=\"text-align: justify;\">And then there\u2019s the global backdrop, which is riddled with trade wars and how the Canadian economy performs will depend, at least in part, on international relations.<\/p>\n<p style=\"text-align: justify;\">\u201cExport growth will instead depend mainly on how demand growth develops in the US, where the latest business surveys paint a gloomy picture,\u201d writes Brown.<\/p>\n<p style=\"text-align: justify;\">There has been increased attention on the mortgage market of late as next year a surge in renewals is expected. In 2015, the second-highest number of annual homes sales was reached.<\/p>\n<p style=\"text-align: justify;\">Given five-year fixed-rate mortgages are the most popular type, 2020 is shaping up to be an important year for the housing market.<\/p>\n<p style=\"text-align: justify;\">However, with currents rates not so far off what they were five years ago, experts Livabl spoke to weren\u2019t raising alarms.<\/p>\n<p style=\"text-align: justify;\">\u201cI can\u2019t imagine there are going to be a lot of renewing out of five-year mortgages next year that are going to be in difficult situations,\u201d Will Dunning, an economist, tells Livabl. \u201cThere will be some, but I don\u2019t think it should be creating as much worry as it seems to be in some quarters.\u201d<\/p>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/www.livabl.com\/2019\/05\/canadian-interest-rates-mortgages.html\" target=\"_blank\" rel=\"noopener noreferrer\">Canadian Interest Rates are On Hold. Here&#8217;s What That Means for Mortgages<\/a> by Josh Sherman | Livabl<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Bank of Canada isn\u2019t budging on its policy rate, at least at the moment, and that\u2019s good news for borrowers. Canada\u2019s central bank maintained the overnight rate, which influences &hellip; [<a href=\"https:\/\/www.roryc.ca\/blog\/2019\/06\/what-interest-rates-on-hold-means-for-mortgages\/\">read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-12746","post","type-post","status-publish","format-standard","hentry","category-mortgage"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Interest Rates On Hold Means for Mortgages? &#8226; Rory C Real Estate | Oakwyn Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.roryc.ca\/blog\/2019\/06\/what-interest-rates-on-hold-means-for-mortgages\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"What Interest Rates On Hold Means for Mortgages? &#8226; Rory C Real Estate | Oakwyn Realty\" \/>\n<meta name=\"twitter:description\" content=\"The Bank of Canada isn\u2019t budging on its policy rate, at least at the moment, and that\u2019s good news for borrowers. Canada\u2019s central bank maintained the overnight rate, which influences &hellip; [read more]\" \/>\n<meta name=\"twitter:creator\" content=\"@RoryClipsham\" \/>\n<meta name=\"twitter:site\" content=\"@RoryClipsham\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Rory Clipsham\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2019\\\/06\\\/what-interest-rates-on-hold-means-for-mortgages\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2019\\\/06\\\/what-interest-rates-on-hold-means-for-mortgages\\\/\"},\"author\":{\"name\":\"Rory Clipsham\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"headline\":\"What Interest Rates On Hold Means for Mortgages?\",\"datePublished\":\"2019-06-12T17:10:02+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2019\\\/06\\\/what-interest-rates-on-hold-means-for-mortgages\\\/\"},\"wordCount\":502,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"articleSection\":[\"Mortgage\"],\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2019\\\/06\\\/what-interest-rates-on-hold-means-for-mortgages\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2019\\\/06\\\/what-interest-rates-on-hold-means-for-mortgages\\\/\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2019\\\/06\\\/what-interest-rates-on-hold-means-for-mortgages\\\/\",\"name\":\"What Interest Rates On Hold Means for Mortgages? &#8226; Rory C Real Estate | Oakwyn Realty\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#website\"},\"datePublished\":\"2019-06-12T17:10:02+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2019\\\/06\\\/what-interest-rates-on-hold-means-for-mortgages\\\/#breadcrumb\"},\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2019\\\/06\\\/what-interest-rates-on-hold-means-for-mortgages\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2019\\\/06\\\/what-interest-rates-on-hold-means-for-mortgages\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"What Interest Rates On Hold Means for Mortgages?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/\",\"name\":\"Rory C Real Estate | Oakwyn Realty\",\"description\":\"Rory C Real Estate Updates | Home Selling &amp; Buying\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-CA\"},{\"@type\":[\"Person\",\"Organization\"],\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\",\"name\":\"Rory Clipsham\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-CA\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"contentUrl\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"width\":504,\"height\":504,\"caption\":\"Rory Clipsham\"},\"logo\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\"},\"sameAs\":[\"http:\\\/\\\/www.roryc.ca\\\/\",\"https:\\\/\\\/www.facebook.com\\\/pg\\\/BurnabyandCoquitlamHomes\\\/about\\\/?ref=page_internal\",\"https:\\\/\\\/www.instagram.com\\\/roryclipshamhomes\\\/\",\"https:\\\/\\\/x.com\\\/RoryClipsham\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"What Interest Rates On Hold Means for Mortgages? &#8226; Rory C Real Estate | Oakwyn Realty","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.roryc.ca\/blog\/2019\/06\/what-interest-rates-on-hold-means-for-mortgages\/","twitter_card":"summary_large_image","twitter_title":"What Interest Rates On Hold Means for Mortgages? &#8226; Rory C Real Estate | Oakwyn Realty","twitter_description":"The Bank of Canada isn\u2019t budging on its policy rate, at least at the moment, and that\u2019s good news for borrowers. Canada\u2019s central bank maintained the overnight rate, which influences &hellip; [read more]","twitter_creator":"@RoryClipsham","twitter_site":"@RoryClipsham","twitter_misc":{"Written by":"Rory Clipsham","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.roryc.ca\/blog\/2019\/06\/what-interest-rates-on-hold-means-for-mortgages\/#article","isPartOf":{"@id":"https:\/\/www.roryc.ca\/blog\/2019\/06\/what-interest-rates-on-hold-means-for-mortgages\/"},"author":{"name":"Rory Clipsham","@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"headline":"What Interest Rates On Hold Means for Mortgages?","datePublished":"2019-06-12T17:10:02+00:00","mainEntityOfPage":{"@id":"https:\/\/www.roryc.ca\/blog\/2019\/06\/what-interest-rates-on-hold-means-for-mortgages\/"},"wordCount":502,"commentCount":0,"publisher":{"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"articleSection":["Mortgage"],"inLanguage":"en-CA","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.roryc.ca\/blog\/2019\/06\/what-interest-rates-on-hold-means-for-mortgages\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.roryc.ca\/blog\/2019\/06\/what-interest-rates-on-hold-means-for-mortgages\/","url":"https:\/\/www.roryc.ca\/blog\/2019\/06\/what-interest-rates-on-hold-means-for-mortgages\/","name":"What Interest Rates On Hold Means for Mortgages? &#8226; Rory C Real Estate | Oakwyn Realty","isPartOf":{"@id":"https:\/\/www.roryc.ca\/blog\/#website"},"datePublished":"2019-06-12T17:10:02+00:00","breadcrumb":{"@id":"https:\/\/www.roryc.ca\/blog\/2019\/06\/what-interest-rates-on-hold-means-for-mortgages\/#breadcrumb"},"inLanguage":"en-CA","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.roryc.ca\/blog\/2019\/06\/what-interest-rates-on-hold-means-for-mortgages\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.roryc.ca\/blog\/2019\/06\/what-interest-rates-on-hold-means-for-mortgages\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.roryc.ca\/blog\/"},{"@type":"ListItem","position":2,"name":"What Interest Rates On Hold Means for Mortgages?"}]},{"@type":"WebSite","@id":"https:\/\/www.roryc.ca\/blog\/#website","url":"https:\/\/www.roryc.ca\/blog\/","name":"Rory C Real Estate | Oakwyn Realty","description":"Rory C Real Estate Updates | Home Selling &amp; Buying","publisher":{"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.roryc.ca\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-CA"},{"@type":["Person","Organization"],"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7","name":"Rory Clipsham","image":{"@type":"ImageObject","inLanguage":"en-CA","@id":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","url":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","contentUrl":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","width":504,"height":504,"caption":"Rory Clipsham"},"logo":{"@id":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg"},"sameAs":["http:\/\/www.roryc.ca\/","https:\/\/www.facebook.com\/pg\/BurnabyandCoquitlamHomes\/about\/?ref=page_internal","https:\/\/www.instagram.com\/roryclipshamhomes\/","https:\/\/x.com\/RoryClipsham"]}]}},"_links":{"self":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/12746","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/comments?post=12746"}],"version-history":[{"count":1,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/12746\/revisions"}],"predecessor-version":[{"id":12747,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/12746\/revisions\/12747"}],"wp:attachment":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/media?parent=12746"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/categories?post=12746"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/tags?post=12746"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}