Canada Mortgage Rates Forecast 2012

Posted on by Emily in Saving Money & Finances

Canada Mortgage Rates Forecast 2012

Fixed mortgage rates are at an all time low in the United States, and the  2012 forecast for Canada seems just as promising. As I mentioned in an article last week, fixed mortgage rates hit a record low at 3.94% in America. This all-time low is also There are many factors that affect both fixed and variable mortgage rates, and many experts are able to project what the year 2012 has in store for home buyers.

The outcome looks good. Rate Supermarket has a panel of experts that evaluate the market and are able to make fairly accurate estimates for the weeks ahead by analyzing trends both in the national and international market. While rates currently are as low as 2.5-3.18% from certain mortgage brokers, Rate Supermarket believes there’s a chance home buyers/owners will experience the same if not lower in 2012.

Canada Mortgage Rates Forecast 2012

Let’s take a look at what experts are saying is the projected forecast for both Variable/Fixed Mortgage rates in 2012.

Variable

It seems as though variable mortgage rates are going to stay as low as they’ve been fairly steadily. This is the result of the steady GDP numbers, inflation being near the target range and the impending economic doom. It seems like the Bank of Canada is unlikely to increase rates, especially around the holidays/new year.

Fixed

It seems as though there’s going to be steady or dropping fixed mortgage rates for Canada in the next few months. There are many explanations as to why this will be, best explained by the Rate Supermarket panel:

“With no quick fix on the horizon for the European debt crisis, the global economic outlook continues to be pessimistic causing downward pressure on longer term bond yields. Couple this with decreased demand for home loans during the busy holiday season, and it is likely that fixed mortgage rates will stay low or even drop further.”

It seems as though Canadian mortgage rates, both fixed and variable, are looking promising for 2012. The housing crisis has been and seems like it will continue to be for buyers.

Canada Mortgage Rates Forecast 2012

So what do you think of these forecasts? If rates stay low it could keep the market steady for buyers and it may well help any slumps from staying for too long. On the other hand there is a deficit of foreclosed homes to sell on for cheap, not as bad in USA but more than normal. The whole real estate business has been in a strange places for years now and personally I think 2012 is going to be throwing some curveballs at us too!

Related: How Much House Can You Afford

Canada Mortgage Rates Forecast 2012

Tags: canada rates, mortgage rates, real estate