Mortgage Rates Look to Remain Firm

In his last interest rate announcement as governor of the Bank of Canada, Mark Carney issued a steady-as-she-goes update, once again leaving the key lending rate at 1 per cent.

Ultimately the Bank of Canada is still mostly comfortable with its outlook for Canada saying growth has been a little stronger, inflation is a little weaker, the main message is rates are on hold.

Rates will eventually go higher but the key word here is 'eventually' and there seems to be no urgency behind that statement.

Mr. Bernake of the U.S. Federal Reserve Bank has indicated that the Federal Reserve rates there will not be going up until mid- 2015 at the earliest or until the unemployment rate drops below 7.5 % (not likely in the immediate future or any time soon).

So, mortgage rates will likely remain where they are now at about 2.84 % for a 5 year fixed term and about 3.6 % for a 7 year term makes them appealing for a home buyer seeking stability of their mortgage payments over the next few years.

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