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Will Mortgage Rates Climb?

February 11, 2011

Yesterday, the Globe & Mail’s Steve Ladurantaye reported on RBC’s market update indicating that the housing market would be stable in 2011 and 2012. Certainly some markets will perform very strongly in 2011. The prediction of 100 basis points increase in the prime rate in 2011 and 150 basis points increase in 2012 would only occur if the United States economy begins to recover. The jury is out and with a strong Canadian dollar any further increases in the prime rate will only make Canada less competitive in the world arena.

Remember, predicting the future is a fools game.