Stating that Canadian economic growth has been growing at a higher rate than expected as the main reason for the increase.  It was what they said afterwards that was most interesting, pointing out that there is "considerable uncertainty" in the global economy currently, no doubt referring to the Equropean debt crisis, the slow US recovery as well as Korean military tensions as indications things are not rosy all over and further rate increases are not guaranteed in rapid succession.  We expect to see a possible increase of .25% in the next few months, but after that will depend on whether the global economy calms down or flares up more as well as US economic news being positive or negative.

 

Bond Yields have been down for the past few weeks, though fixed rates have been slow to come down in response.  Many lenders are instead offering "quick close" specials instead of lowering their rates.  The 5 year posted fixed rate is now 5.99% (it was 6.25%), this is the new rate used to qualify all clients looking for variable rate mortgages.