What is going on with interest rates?

What is happening right now is like a roller coaster. Some days we are on the way up and then we hit the top and a wild crazy ride down makes us gasp only to hit another climb up. While this may be fun if you are a thrill seeker, it's not so fun if you have a mortgage decision to make in the near future.

The market never is a straight line.  Fixed mortgage rates are determined by daily fluctuations in the bond market.  The bond market, like the stock market, reacts to every piece of news causing a rise or fall in interest rates. 

The headline economic news recently and the effect on fixed interest rates (in brackets):
Jan 25 - Bank of Canada announces rates will not likely to change until full effect of previous increases take effect  (Positive)
Feb 10 - Canada adds 150,000 new jobs in January (Negative)
Feb 14 - US officials hints at further rate increases to bring  inflation down (Negative)
Feb 21 - Inflation cools in January to 5.9% (lower than December), still above 2% target (Positive)
Feb 23 - Number of Americans filing for unemployment benefits unexpectedly fall (Negative)
Mar 3 – US Federal Reserve indicates raises to their key rate are still coming in 2023 (Negative)
Mar 8 – Bank of Canada holds Bank rate, first time in a year where Canadians see no increase (Positive)

Summary, there are so many news releases that will continue to have an impact on short and long term rates that we will continue on the roller coaster of interest rates until there is more certainty.

Hang on we still have more of the ride to go!

Source of data:  CREA 

Questions about your mortgage and interest rates? Contact a One Link Mortgage Broker today!