Canadian inflation figures released today is good news for homeowners. The core inflation rate year-over-year for June of this year was 1.9%. This means that the price of core goods this June was 1.9% more expensive than the same goods June, 2010. This is right in line with the Central Bank's target core inflation rate of 2%. Core inflation looks at a variety of different consumer items, and excludes what are considered volatile items such as gas and food.

Why is this good for homeowners? The short answer is that it helps keep mortgage rates low. Banks like CIBC and BMO set their mortgage rate based on the Central Bank's Overnight Lending Rate. One thing the Central Bank does to keep inflation in check is to raise that main lending rate. With inflation right in line with the target, they are less likely to raise that rate and thus mortgage rates will stay lower in the near term. Good news for all looking for a new mortgage, or renewing their current one!