Canada Mortgage and Housing Corp. expects short-term interest rates will begin to rise in the second half of 2010. With the overnight rate expected to increase in the coming months, mortgage rates have begun to rise.
According to a CMHC scenario, posted mortgage rates will gradually increase throughout the course of 2010, but will do so at a slow pace.
For 2010, it is assumed the one-year posted mortgage rate will likely be in the 3.6 to 4.8 per cent range, while three-and five-year posted mortgage rates are forecast to be in the 4.2 to 6.7 per cent range.
For 2011, the one-year posted mortgage rate is assumed to be in the five to six per cent range, while three and five-year posted mortgage rates are forecast to be in the 5.6 to 7.2 per cent range.
"Rates could, however, increase at a faster pace if the economy recovers more quickly than presently anticipated. Conversely, rate increases could be more muted if the economic recovery is more modest in nature," says senior market analyst Richard Cho of CMHC.
Mortgage intereste rates updates can be found here - http://www.torontogreathomes.com/ONTARIO_MORTGAGE/page_929364.html