Banks See A 2.75% Rate Hike In 19 Months

What happens in the mortgage business has a direct effect on real estate.  We often get buyers and sellers asking about interest rates.  So, Here’s what the “prophets’” predict rates will do by the end of next year (2011):

Exerpt from mortgagetrends.com

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That’s an average estimated increase of 2.75% in the overnight rate (rounded to the nearest 1/4%).

This number will certainly bring doubters out of the woodwork, as some still fear slow growth and/or a double-dip recession.

As for the first rate change, the banks forecast that rates will start their climb by July. Specifically:

  • BMO:  July 20
  • CIBC:  July 20
  • Scotia:  June 1 (Story)
  • TD:  July 20
  • RBC: July 20 (“Although, markets are becoming
    anxious about a June increase,” RBC says.)

For more information and or advice on mortgage related topics, you can contact one of our preferred local brokers;

Scott Peckford

Scott Gingles

Brenda Dilley