With the Fed expected to increase interest rates by the end of this year, there could be an impact on Canadian government bonds and subsequently some mortgage rates.
Doug Porter, chief economist at BMO Nesbitt Burns, told the Globe and Mail that increased mortgage rates for 5-year fixed-rate loans are a possibility but he says continued low Canadian interest rates together with weak inflation is an indicator of weak economic growth, pressuring job creation and wage increases.
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Economists are not expecting the Bank of Canada to increase interest rates for some time, probably late 2017 or early 2018; however, for shorter-term mortgages there could be a rise much sooner.