Quote:
Originally Posted by Reaper
Our offered fixed rate did not change from 3.99% when there was a 0.5% drop in October. If we hadn't renewed I'm not sure it would have moved much lower if at all.
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Fixed rates don't react instantly to interest rate changes, and instead are determined by the bond market. The bond market is more about where the market is expected to go. The current drops were already built into the bond market and projected pretty far out. Once the current round of cuts happens, the bond markets will readjust based on where things stand after the cuts.
In April, if the Canadian economy is still in the dumps and inflation is under control, I'd expect to see fixed rates fall again.