Interest Rate Expectations for Next 30 Days

The info below was gathered from a panel of experts, and consisted of Greg Klump, Chief Economist, CREA, Dr. Ian Lee, Director of MBA program at Sprott School of Business, Garth Turner, George Hugh, VP of Treasury for Ing, Dan Eisner, President, Verico True North,

One opinion was that fixed rates may reduce in anticipation of a slower real estate market over the last half of the year, VRMs will see pricing increase by .25-.50% on June 1st. and may continue to increase

This business still comes down to expert advice and getting in front of as many customers as you can every week. Your agents should understand your value and why you wish to speak with as many of their purchasers and listers as possible.
What is your outlook for Canadian mortgage rates over the next 30-45 days?

Panel consensus - May 2010

Fixed mortgage rates - Unchanged (80%)
Variable mortgage rates - Up (60%)

Summary
Fixed mortgage rates have risen quickly over the past month. However, given the recent drop in Government of Canada bond yields (the main influence on fixed mortgage rates) the Panel believes fixed rates will stay at current levels in the short term.
Variable mortgage rates will go up, but the question is when. An increase in interest rates will result in higher variable mortgage rates. The debate is whether or not the Bank of Canada will announce an interest rate increase following their meeting on June 1 or hold out until July 20. The Panel is split on the timing of the increase; however, 3/5 or 60% believe variable rates will begin their rise on June 1, 2010.

Fixed rates: Unchanged

Fixed mortgage rates increased quickly last month, with the benchmark posted 5 year fixed mortgage rate up by 1%. The Panel believes fixed mortgage rates are done climbing in the short term. Further increases are not in the cards this month as bond yields have dipped and concern is growing over Greece's debt crisis and its impact on the global financial markets.

Variable rates: Up

The Bank of Canada removed their conditional commitment to keep interest rates at all time lows until July, opening the door to speculation on whether interest rates will begin increasing in June or July. Economic indicators to be published later this month will help determine the Bank's decision.
The majority of the Panel members believe variable mortgage rates will start their accent in June rather than July.