The British Columbia Real Estate Association (BCREA) has expressed optimism that mortgage rates will remain at their historically low levels for most of this year, including one-year mortgage rates of 2.85 per cent.
BCREA also said in its monthly Mortgage Rate Report that Canadian bond yields were “sent plummeting to new lows” thanks to the unexpected rate cut by the Bank of Canada in January.
Despite the drop in bonds, mortgage rates moved only slightly lower.
“As the Canadian economy recovers from the dramatic decline in oil prices, and if the US Federal Reserve begins tightening as expected in the summer months, we could start to see some upward pressure on long-term interest rates towards the end of the year and into 2016,” the report states.
BCREA added that the country’s economy went up by 2.4% in Q4 2014, thanks to consumer spending and inventory accumulation. 

“We expect Canadian economic growth will decelerate slightly in 2015 to about 2.2%, with the first half of the year seeing sub-2 %, as depressed oil prices drag investment and employment lower in oil and gas producing provinces," the report states. "However, in the second half of the year, the impact of looser monetary policy and a lower Canadian dollar combined with a strong and still strengthening US economy, should provide some stimulus to Canadian economic growth.”

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