First Foundation Best Mortgage Rates to Open the Week:
1 Year 2.64%
2 Year 3.20%
3 Year 3.35%
4 Year 3.64%
5 Year 3.74%
7 Year 4.79%
10 Year 4.99%
ARM / Variable 2.20%
Line of Credit 3.50%
Qualifying Rate 5.44%
Prime Rate 3.00%
Toronto’s main stock index closed sharply higher on Monday, rising to its strongest level in more than a week as energy, gold and financial issues led a broad-based rally. Oil prices rose 1 percent as spreading unrest in the Middle East intensified concerns about potential threats to the region’s oil supply, while U.N.-mandated air strikes kept flow reduced from OPEC-member Libya.
The Toronto Stock Exchange’s S&P/TSX composite index ended up 224.07 points, or 1.62 percent, at 14,013.70 – it’s best performance since March 9, with all 10 of its main groups higher.
While the outlook for Japan’s recovery remained a worry for global markets, glimmers of hope about the nuclear crisis and investor Warren Buffett’s comments about Japanese stocks being a buying opportunity helped investor sentiment overall.
Canadian inflation eased in February, defying the trend in many other countries and removing some pressure from the Bank of Canada to soon start raising interest rates again. Core inflation, which excludes gasoline and other volatile items, slipped to 0.9 percent year-on-year, the lowest level since January 1984, Statistics Canada said on Friday
The overall consumer price index rose 0.3 percent in the month, the same increase as the previous month, for a 2.2 percent gain year-on-year. That was down from 2.3 percent in January and just below the consensus forecast of 2.3 percent.
“The weak inflation numbers coupled with the global economic concerns should weigh towards keeping the (central) bank on the sideline until July, even in the face of stronger than expected Canadian economic growth,’‘ said Sal Guatieri, senior economist at BMO Capital Markets..
The low CPI data is somewhat of a game changer for many economist’s predictions including Citigroup and Reuters who have now pushed back their forecast for the resumption of rate hikes from the April 12th BoC meeting to the July 19th meeting. This translates to a 14 week delay on a hike to the prime mortgage rate – welcome news for those currently holding a variable rate mortgage.