U.S. FED HIKES KEY RATE, UNLIKELY TO AFFECT CANADIAN MORTGAGES
Dec 14, 2016
By Bob Komsic
To the surprise of few if any economists, the U.S. central bank has announced it’s raising its key interest rate by a quarter point to a range of 0.50 to 0.75%
Federal Reserve Board Chair Janet Yellen says the reason was, ”my colleagues and I are recognizing the considerable progress the economy has made toward our dual objectives of maximum employment and price stability.”
Mortgage brokers on this side of the border say it’s unlikely that will result in a significant jump in mortgage rates.
One online brokerage says the bond market’s already priced in the Fed increase.
Canadian five-year and 10-year bond yields did move slightly higher after the announcement Wednesday, but experts say it’s unlikely that will be strong enough to result in any major increase in five-year fixed mortgage rates.