Window closing’ on ultra-low mortgage rates...
“If there was any lingering doubt that the Bank will soon raise rates, last week’s jobs report erased them. The probability that the central bank will boost its key policy rate by May, jumped to almost 75%”. That applies to variable rate mortgages. Fixed rates are already on the move.
* TSX +20.08 to 13,791.85 as losses in the energy sector grew as oil prices slid for a third day.
* DOW +69.48 to 12,161.33
* Dollar -.18c to 100.99c USD amid some positive news from the housing sector. StatsCan reported that the value of Canadian building permits increased 2.4 % to $5.7 billion in December following two consecutive months of declines. The increase was mainly attributable to higher construction intentions for multi-family dwellings in Ontario.
* Oil -$1.50 to $89.03 USD per barrel energy sector was the biggest decliner as the risk premium for crude that resulted from almost two weeks of chaotic protests in Egypt unwound for a third day . A stronger U.S. dollar also deterred some buyers. Since oil is priced in U.S. dollars, a stronger greenback makes it more costly for buyers who use other currencies.
* Gold -$.80 to $1348.20 per ounce
* Canadian 5 yr bond yields markets -.03bps to 2.71. The spread (based on the MERIX 5 yr rate published rate of 3.99%) is far below the comfort zone at 1.28. Fixed rates have already increased at two banks. Rate specials could end “effective immediately, so get any applications for 3.79% in early.
(courtesy of your friendly neighbourhood Merix DBD in Ontario Southwest)
