Here’s what April Bowler at TD Canada Trust had to say about this month’s interest rates:
We have had our first Bank of Canada announcement for 2024 and the decision was another Hold of the overnight lending rate. Welcome and expected news to start the year. Becoming familiar with the announcements is the language around inflation and the economy, and they are still leaving the door open for further hikes and proceeding with caution. However, we predict this year will see our first decrease in quite some time on the horizon – the big question being when. March 6, 2024 is the next scheduled announcement and economists are on the fence whether we will see the first decrease this early in the year or perhaps closer to summer!
As you will pleasantly see from the rate sheet, fixed rates continue to trend downward! These rates are directly impacted by bond yields, and as they fall, the fixed rates are not far behind! We have been watching these closely as an indicator to assist clients in anticipating what might be coming. It has been a great tool to help guide clients through the pre-approval process where we can try to obtain the best possible rate. If we see bond yields rising, this is an indication that fixed rates will be going up, therefore timing an interest rate hold before this happens can help in the qualification process.
This month tends to be a popular time for people to travel and try to get over the middle of the winter hump. The market tends to be quiet in February making it the perfect time to connect with a Realtor and a Mortgage Specialist about getting ready for the Spring market.
