Here is the cold, hard truth: there is uncertainty in the market, and the trend is up.
With 5 year interest rates still as low as 3.59% there is nowhere to go but up. We’ve been incredibly spoiled in a world with interest rates under 3% the last few years, but it isn’t realistic to think they will stay there. If you are building a home or in the market to make a move up, a mortgage rate hold is going to be very useful to you this year. Need one? I know a good mortgage broker. 🙂
Currently, the US Federal Reserve has forecasted 3 rate increases in 2019. The Bank of Canada will always stay well aligned with the Fed. This would move bank prime would to 4.70%. In October, the Bank of Canada made a very hawkish statement and indicated that they intend to continue with rate increases this year. In November, however, the BoC sounded more sheepish about those rate increases while discussing Western Canadian Select (WCS), Canada’s heavy-oil benchmark, plunging 74% since mid-May.