The Bank of Canada announced on January 18, 2011 that interest rates will be held at their current levels. The trend-setting overnight rate remains at 1%, which holds the Bank rate a quarter point higher at 1 1/4%. These interest rates remain at near record lows, and that’s good news for potential homebuyers, as well as homeowners with variable rate mortgages, and those thinking of refinancing or locking in their mortgage for a longer term.
As support for the decision not to raise interest rates at this scheduled rate announcement, the fed Bank cited global economic recovery proceeding faster than anticipated in both U.S. Europe . Canadian recovery is proceeding, but growth over the next two years is expected to be modest as government spending winds down. The Canadian economy expected to grow 2.4% this year, 2.8% next year.
The decision to hold interest rates at current levels is good news for the real estate industry. Despite record or near-record home prices in markets across the country, today’s affordable mortgage rates keep the dream of home ownership within reach for most Canadians.
For further details on the Bank’s interest rate announcement, click here. The next scheduled date for the Bank of Canada to announce interest rates is March 1, so attractive mortgage rates are expected to continue for the immediate future.
For more information about mortgage rates and financing options that can help make your dream of home ownership a reality, contact me – Your Neighbourhood REALTOR®
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