Guelph Mortgages

It looks like all the government stimulus hasn’t driven up inflation, as some had feared it might. That’s probably because we are still sitting at an unemployment rate over 8%.

The Total Consumer Price Index showed gains of 1.4% in May. When excluding energy the increase was just 1%. So what does this mean for Interest Rates?

The result of low inflation is that there is little need to increase short term rates, such as the Prime Rate, and there will be less pressure on fixed rates to rise. Variable Rate Mortgages will continue to be very attractive with rates hovering around 2% and a 12 month outlook of remaining under 3.5%. If you can stomach the ups and downs variable is still the way to go.

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Christopher Bisson
Mortgage Broker
The Mortgage Centre
519-763-3900 x1003

www.mortgagecencierge.ca