Some fixed mortgage rates are up despite hints of Bank of Canada cuts. Why? [Video]

Market watchers say some Canadian lenders are raising their fixed-mortgage rates on offer despite indications from the Bank of Canada that rate cuts are possible in the months ahead.

Mortgage experts who spoke to Global News say despite the Canadian central bank opening the door on rates coming down by mid-year, stubborn economic data in the United States might play spoiler for prospective homebuyers eyeing the spring market.

The Bank of Canada held its benchmark interest rate steady at 5.0 per cent for the sixth straight decision last Wednesday, amid signs that key inflation indicators were heading in the right direction.

Governor Tiff Macklem told reporters last week that a June interest rate cut is within the “realm of possibilities” — a departure from previous messaging when he said it was “too early” to talk about lowering the policy rate.

He said the central bank is now looking for evidence that recent easing in inflation will be “sustained.”

The Bank of Canada’s …