The latest retail rate forecasts published by Desjardins show mortgage rates likely to be in the range of 6.05 to 8.95% for the five-year period through the second quarter of 2023.
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Desjardins Group Vice President and Chief Economist Jimmy Jean also expects interest rates to rise again this year.
“Presently, we can say for sure that we are already at 5.5%. We expect the Bank of Canada to do another rate hike in October, so we should still expect it to be a little bit higher in terms of interest rates by the end of the year,” he said in an interview with TVA. Novelles.
Quebecers don’t necessarily pay these rates, Mr. Jean cautioned.
“The rates we are looking at here are not post-discount rates, they are posted rates. So, generally, the rates that people actually pay are lower than that,” he explained.
However, after reaching this high, the interest rates are expected to decline again.
“I still think we’ll see some relief in 2023, for example in terms of mortgage rates, because at that point, we should see the financial markets start to hold their own, not just the fact that rates are going to plateau. At some point, if growth slows, we expect the Bank of Canada to start cutting rates again.” One has to hope, though cautiously,” Jimmy Jeans said.