Mortgage Rates Post Election
“How Does The Outcome Of The Federal Election Impact The Mortgage Market?”
Ok, its over.
The election is in the rear view mirror.
We have a conservative majority, so now what?
There is no question that a conservative majority spells greater economic and financial stability to the rest of the world, regardless of how you may have chosen to vote.
Right now the Canadian economy is on a growth path, and any change to the current approach to governance would have been an unknown that could have worked against the financial markets.
Its certainly not that change can’t be good, but change is also an unknown variable with respect to whether or not things improve from change or get worse.
So the short answer is that the results of the election are more positive than negative to the mortgage rates at this time.
That being said, there are certainly a lot of other factors to consider that impact the financial market and staying the course also leaves us with an economy that is starting to overheat a little bit as we narrow the production capacity gap and create inflation in the process.
Everything still points to the Bank of Canada raising their current 1% rate starting sometime in the next two months and then potentially continuing to increase it during the rest of the year to try and keep inflation in check.
The bond rate is trending down at the present time, which could actually create a short term reduction in mortgage rates, but it may not as well, especially if lenders view any reduction to be short lived.
So its hard to say exactly what rates are going to do for the rest of 2011, but on balance they are more likely to go up than down.
At the same time, with respect to mortgage rates in general, we are in about as good a shape we could expect to be in at this time of the year, all things considered.
Different election results could have easily lead to greater uncertainty going forward in the financial markets.
But in the end, the election results are returning us back into more of a “business as usual” mode which hopefully will bode well for mortgage rates going forward.
If you would like to discuss mortgage rates or have any questions on what types of options are available to you in the market, I recommend that you give me a call so we can book some time to get all your questions answered.
About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel