Sarah A. Colucci, York Region's Mortgage Expert. Savings Guaranteed.
  • Home
  • WHY USE SARAH FOR YOUR NEXT MORTGAGE
  • APPLY ONLINE
  • PRODUCTS
    • Free House Value Tracker Report
    • CASH-BACK MORTGAGE
    • BRIDGE FUNDS
    • REVERSE MORTGAGES
    • SELF-EMPLOYED MORTGAGES
    • FIRST-TIME HOME BUYER PRE-APPROVALS >
      • FIRST-TIME HOME BUYER TAX CREDIT
    • MORTGAGE REFINANCE >
      • Prepayment penalties
    • SPOUSAL BUYOUTS
    • INVESTMENT PROPERTIES AND RENTALS
    • BRUISED CREDIT
    • PRE-APPROVALS
    • NEWCOMERS
    • DEBT CONSOLIDATION
    • HOME EQUITY LINE OF CREDIT
    • PURCHASE PLUS IMPROVEMENT PROGRAM
    • WHY INVEST IN REAL ESTATE
    • MORTGAGE RENEWALS >
      • New Mortgage Rules and Mortgage Renewals
    • SECOND MORTGAGE LOANS
    • LESS THAN 20% PROPERTIES
    • DOWN PAYMENT
  • CONTACT ME
  • PRIME RATE CANADA
  • CLOSING COSTS
  • DOCUMENTS REQUIRED FOR MORTGAGE FINANCING
  • MORTGAGE DICTIONARY
  • MORTGAGE NEWS
  • GOVERNMENT MORTGAGE RULES
  • MORTGAGE TIPS
  • HOUSE HUNTING CHECKLIST
  • APPRAISALS
  • FIXED OR VARIABLE RATE?

Sarah Colucci's Mortgage Blog

Stay enlightened about mortgage & real estate news in Canada.
Mortgage News 2022

2023 OUTLOOK: WHat can we expect with mortgage rates?

1/3/2023

0 Comments

 
​#overnight     #rate cut     #payments     #variable     #term     #rate hikes     #policy     #bond market     #home prices     #recession  
  

While many homeowners' monthly mortgage payments on adjustable-rate mortgages and lines of credit are increasing by hundreds of dollars per month, some industry analysts think that time is running out on interest rate increases.

With rampant inflation and higher rates bleeding through to 2023, it is expected that variable-rate and fixed-rate mortgages will continue to remain unattractive in the short term.

BCREA believes that five-year fixed rates have already peaked at the current 5.5 percent average, and that rates are expected to start falling early in 2023, ending at 5.05 percent at the tail-end of 2023. Mortgage rates are expected to increase through 2023, but they are equally likely to start falling if the Bank of Canada (BoC) hits their inflation targets earlier.
    

CIBC analysts project that the Bank of Canada will keep rates at the higher levels through 2023, slowing demand and allowing inflation to hit its 2 per cent target. 

Looking forward at the end of 2023 and through 2024, analysts are penciling in an early rate cut from the Bank of Canada, which could bring national benchmark prices back below the 3.00% mark before 2024. If the bond markets predictions are right, though, our central bank would be signalling a rate cut before year-end 2023.
  

The Bank of Canada is expected to start cutting its policy rate in response to significant economic slowdowns or a recession, beginning in the second half of 2023. The BoC has also said that it will hold off on cutting its overnight rate until Canada's economy has recovered and inflation has reached about 2%.

Long-term rates could reach lower levels by late 2023 in both Canada and the United States, because markets are starting to price in modest central bank policy rate cuts for 2024, and forecasting inflation will stabilize and decrease. 

Currently, the Canadian 5-year bond yield is priced to expect another 0.75 percent hike by the Bank of Canadas interest rates in early 2023.  That means that some homeowners, who are seeing a big jump in mortgage payments, may have to either refinance their homes or list them for sale. It can take 1-2 years for inflation to tame, according to BoC, so holding onto a short-term fixed-rate mortgage might be a good bet, but you might then end up having to re-lock in as rates will not be at their lowest.    

Cited Sources
  • https://www.mortgagesandbox.com/mortgage-interest-rate-forecast 0
  • https://www.nesto.ca/mortgage-basics/mortgage-rates-forecast-canada-2023/ 1
  • https://myperch.io/canada-interest-rate-forecast/ 2
  • https://www.theglobeandmail.com/investing/personal-finance/household-finances/article-mortgage-market-predictions-2023/ 3
  • https://www.canadianmortgagetrends.com/2022/12/2023-housing-and-interest-rate-forecasts/ 4
  • https://storeys.com/what-to-expect-canadian-real-estate-2023/ 5
  • https://canadatoday.news/on/will-the-bank-of-canada-hike-mortgage-rates-again-in-2023-heres-what-industry-experts-are-predicting-2-169394/ 6
  • https://dailyhive.com/vancouver/canada-mortgage-rate-forecast-2023 7
  • https://globalnews.ca/news/9370291/canada-housing-market-outlook-2023/ 8
0 Comments



Leave a Reply.

    Picture

    By: Sarah Colucci

    Senior Mortgage Agent, Lic. M14000929

    Archives

    January 2023
    October 2022
    September 2022
    July 2022
    June 2022
    May 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    August 2021
    July 2021
    June 2021
    May 2021
    February 2021
    December 2020
    November 2020
    October 2020
    September 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    February 2019
    January 2019
    December 2018
    August 2018
    May 2018
    April 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017

    Categories

    All

    RSS Feed

GET IN TOUCH WITH US

Let's get started today.



Address

411 Queen St. 
Newmarket, ON
​L3Y 2G9

Sarah A. Colucci, Mortgage Agent Lic. M14000929
Sherwood Mortgage Group
Licence # 12176

Telephone

Direct: 647-773-4849
​
Email: scolucci@sherwoodmortgagegroup.com
Picture
  • Home
  • WHY USE SARAH FOR YOUR NEXT MORTGAGE
  • APPLY ONLINE
  • PRODUCTS
    • Free House Value Tracker Report
    • CASH-BACK MORTGAGE
    • BRIDGE FUNDS
    • REVERSE MORTGAGES
    • SELF-EMPLOYED MORTGAGES
    • FIRST-TIME HOME BUYER PRE-APPROVALS >
      • FIRST-TIME HOME BUYER TAX CREDIT
    • MORTGAGE REFINANCE >
      • Prepayment penalties
    • SPOUSAL BUYOUTS
    • INVESTMENT PROPERTIES AND RENTALS
    • BRUISED CREDIT
    • PRE-APPROVALS
    • NEWCOMERS
    • DEBT CONSOLIDATION
    • HOME EQUITY LINE OF CREDIT
    • PURCHASE PLUS IMPROVEMENT PROGRAM
    • WHY INVEST IN REAL ESTATE
    • MORTGAGE RENEWALS >
      • New Mortgage Rules and Mortgage Renewals
    • SECOND MORTGAGE LOANS
    • LESS THAN 20% PROPERTIES
    • DOWN PAYMENT
  • CONTACT ME
  • PRIME RATE CANADA
  • CLOSING COSTS
  • DOCUMENTS REQUIRED FOR MORTGAGE FINANCING
  • MORTGAGE DICTIONARY
  • MORTGAGE NEWS
  • GOVERNMENT MORTGAGE RULES
  • MORTGAGE TIPS
  • HOUSE HUNTING CHECKLIST
  • APPRAISALS
  • FIXED OR VARIABLE RATE?