A lot has changed since the Bank of Canada’s (BoC) October Interest Rate announcement. For one, while we’ve seen fixed rates increase, BUT we’ve also seen the bond yield weaken.

What does this mean for rates? If the bond yield continues its descent, we should see fixed rates stabilize, if not decrease slightly. So what about variable rates?

With the next Bank of Canada Interest Rate announcement slated for Wednesday, no one is expecting the BoC to increase its overnight rate. This means that borrowers with variable rate mortgages, lines of credit etc., can rest easy for now.

This is good news for those in variable term mortgages. Were you starting to get a little nervous? Who could blame you? Last month marked your fifth raise in almost a year and a half. Wow!

So, rest easy on rates, for now. Come Wednesday we’ll hopefully get a better idea of rate hike plans and how these might have changed since October’s announcement.

Stay tuned!