The BC Real Estate Association unveiled its June 2020 Mortgage Rate Forecast.
The five-year qualifying rate is projected to be 4.9% for the rest of the year and isn’t expected to break the five percent mark until later in 2021.
Chief Economist, Brendon Ogmundson spoke with MyPGNow.com.
“We do have them coming up at the end of next year, again, just anticipating that we will be kind of out of this economic doldrums or crisis point that we have been in.”
“Since March, we have seen some pretty dramatic changes in the economy and interest rates. The Bank of Canada lowered its overnight rate to what it considers to be most effective and also taking a lot of action to push mortgage rates lower.”
On the flip side, the five-year average discounted rate in BC is expected to hold steady at 2.5%.
Ogmundson adds they don’t anticipate any sort of increase until the end of next year with a projected rate of 2.65%.
“Our baseline is that we are going to see a recovery that starts in the third quarter of this year but we don’t expect the Bank of Canada to move on interest rates until 2022.”
The second quarter of 2020 will perhaps prove to be one of the most turbulent periods in Canadian economic history. The average Canadian 5-year fixed rate now sits at a record low of 2.49 per cent. Find out more in BCREA's Mortgage Rate Forecast: https://t.co/QHQYa0EV4n #bcrea pic.twitter.com/fUvKEBS2Hx
— BC Real Estate Association (@bcrea) June 18, 2020
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