Interest Rates on the rise later in 2010?

Yesterday the Bank of Canada announced that is was going to maintain the banks overnight rate at current levels. The release further indicated that they expect to continue to conditionally hold the overnight rate at current levels until at least the end of the second quarter.


However as noted in the Toronto Real Estate Boards economic commentary on the announcement better than expected economic performance and other positive factors lead to anticipation that the Bank of Canada may begin to raise rates in the second half of the Year. If so this will of course increase the cost of borrowing and could begin to modestly impact the demand side of the Real Estate Market.


Rising interest rates is one of a number of data points i'm currently watching to get a sense of where the market might be headed... i'll have more to say on that very soon.

Note: that interest rates do fluctuate up and down based on other market conditions but do tend to follow the Bank of Canada's overnight rate in terms of overall direction. If you are interested in know the best going rates today you can contact Mary McCreath of Mortgage Intelligence for an update on current rates.