The good news from BCREA’s economic outlook is that the normalization of both short-term and long-term interest rates will be deferred. BC households with variable rate mortgages will therefore be facing lower payments than what was predicted at the beginning of the year.
As well, new homebuyers or homeowners set to renew their mortgages will be offered a second chance at securing rates at levels last seen during the worst of the financial crisis.
The BCREA forecast is for a continuation of low mortgage rates into early 2011. The 1-year fixed mortgage rate is predicted to finish 2010 at around 3.2 % and to reach 4.05% by the end of 2011. The 5-year fixed mortgage rate is predicted to end the year at 5.35% and to reach 6.1 % by the end of 2011.