Monday Market and Mortgage News - January 24th, 2011 - Edmonton & Calgary

Best First Foundation Rates to Open the Week:

Term Mortgage Rates

1 Year 2.70%
2 Year 3.10%
3 Year 3.19%
4 Year 3.69%
5 Year 3.69%
7 Year 4.75%
10 Year 5.15%

ARM / Variable 2.20%
Line of Credit 3.50%

Qualifying Rate 5.19%
Prime Rate 3.00%

Market News

The Toronto stock market rose 89.01 points to 13,347.58 as investors appeared optimistic ahead of the start of Canada’s earnings season. The Canadian dollar also rose, adding 0.08 of a cent to 100.54 cents US.

Traders are looking ahead to the release of Canadian consumer price index (CPI) data at 7 a.m. on Tuesday, which is expected to show the annual inflation rate climbed to 2.5 percent in December, while price increases excluding food and energy costs were more subdued.

Mortgage News

The consumer price index report could offer hints on whether the Bank of Canada, mandated to keep inflation at the midpoint of a 1 to 3 percent range, is likely to push back or bring forward rate hikes. However, last week, the central bank did seem to be indicating that sluggish growth and a strong domestic currency could keep interest rates on hold for longer than markets had anticipated.

Finally, watch those fixed rates as Canadian bond prices are nudging higher and could be in for another boost. The magic range for Tuesday’s consumer price index is 2.4-2.5%. If the inflation rate comes in above that, it could push up bond yields even higher and perhaps set off a round of fixed rate hikes.