The past year has brought some surprises to the Canadian mortgage market.
A new report from the economics team at the British Columbia Real Estate Association highlights how the year began with an upward trajectory for the Canadian yield curve and expectation that the BoC would gradually increase interest rates.
But with the yield curve inverting and the Bank of Canada holding pat on rates, there has been volatility in mortgage rates, exacerbated by the US-China trade war and other external factors.
But what about 2020?
BCREA believes that there will be no change in interest rates in 2020 as the BoC holds off major changes to monetary policy amid weakening growth expectation and household debt levels.
On the economy, the report says that Canada’s growth is still slightly below trend and calls for a 1.6% growth rate for 2019, rising to around 1.8% in 2020.