RBC Economics has released their latest economic forecast. Some key topics to note are the forecast for interest rates. Page 5 of the report predicts that the Bank of Canada may not start raising the Prime rate until the first part of next year. And by the end of the next year (2013) for rates to be a full 1% higher. When the Prime rate goes up variable rate mortgages go up too. With that being said don't be surprised if fixed rates start moving up sometime in the next month or two. This according to "Canadian Mortgage Trends" who report that history show due to the spring surge of mortgage applications, rate holds and property purchases it can contribute to a upward push on fixed mortgage rates.
It may be a good time to speak to your mortgage advisor in order to get a rate held. RBC's regular rate hold is for about 120 days. Meaning if you purchase a place and close on this purchase before the 120 days is up you get this rate even if rates have gone up. If you don't purchase a place the rate just expires. A rate can then be reset for another 4 months at that time if you're still looking for a home to purchase.
Click on the link to see all the details on rates as well as forecast for the economy, domestic, U.S., and abroad:
Tony Marchigiano | Mortgage Specialist | RBC Royal Bank | Royal Bank of Canada | T. 604-505-7109