Are Mortgage Rates Going Down In 2019?

This is a question that we receive almost every day in our Mortgage Architects office. Nobody knows the answer to “Are Mortgage Rates Going Down In 2019?” but we have been in industry long enough that we can check the cues and probabilities.

The Bank Of Canada

With the Bank of Canada deciding not to increase their overnight rate in April, Bank of Canada Governor Stephen Poloz left clues as to where he believes our rates will be going. At Robert Floris’ Mortgage Architects Office on the East Hamilton Mountain, we will try to anticipate the Governor’s message to help our clients. Generally speaking, the outlook for the economy may not appear rosy. However, this should have a more downward pressure of housing mortgage rates and help to answer the question are mortgage rates going down in 2019.

Variable Rate vs. Fixed Rate Clients

If you have a variable rate, it would not surprise us to see at least one rate cut by the end of 2019. If you have a fixed rate and are renewing this year, there should be no urgency to think that rates are going up. For our valued clients, there is no need to panic.

Are Mortgage Rates Going Down In 2019? Why?

The next question is: why? The growth of Canada’s economy has dropped from 1.7% annual growth to 1.2%. This may not appear large, but it indicates a big slow down for our growth. Another reason is our country is heavily indebted on a personal level. In fact, more than 25% of the population are living pay check to pay check. If you have equity in your home in plenty of debt, our advice would be to refinance while you can!

Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

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