Mortgage Rates to Stay Low

The Bank of Canada is keeping its interest rate at 1% for the remainder of the year. What does that mean for us? Mortgage rates will likely stay at historically low rates for another year.

The central bank's latest take on the economy is that conditions have weakened somewhat since it last reported in October, but that at least some of that is due to temporary factors. The Bank continues to hint that they will be raising the interest rates soon, although the timing of that move appears to be moving further into the future.

Both actions were anticipated by economists, who said after softening the bias in October, it was likely too early for the central bank to signal another directional shift, not matter how subtle. The bank says it anticipates the pace of economic activity will pick up through 2013.

In a bit of a surprise, the bank notes that while household credit and household activity is beginning to decline, it remains to be seen whether the moderation will continue.

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