Rates Holding Steady For Now
The Federal Reserve announced that it is still planning 3 rate cuts by the end of 2024 if inflation trends lower and jobless claims increase, helping lower yields. As well, Canada’s inflation rate dropped from 3.1% to 2.80% in February, which was lower than expected.
Let’s see what happens over the coming months. If inflation trends lower and stays at the 2% mark AND the Fed drops their rates, the Bank of Canada will start to decrease. Keep in mind that fixed rates will fall well before the Bank of Canada makes a move. But we all know the Bank of Canada is the headline grabber. The news discusses that over fixed rates.
From Greg Foss, partner & mortgage broker with Mortgage Connection.ca.
