Variable mortgage rates are tied to your banks prime lending rate which is in turn tied to the Bank of Canada’s overnight rate. Now that Mark Carney has pledged to not raise the overnight rate for at least a year it’s made my job of rate forecasting considerably easier. Variable mortgage rates aren’t going up!
Having said that, economic conditions can change and I will continue to check in on a monthly basis assessing the pressures on our central banker. If economic conditions continue to deteriorate we may be faced with the prospect of an even lower prime rate.
For now however the forecast for variable rates is to maintain the status quo for the remainder of 2013.