As summer weather heats up again in the East with temperatures in the high 30’s, the real estate market is doing the opposite with a heavy cooling off of sales.   This has forced lenders into a competitive race for  what buyers are left in the market.  Rates are again below 4% on the popular 5 yr. fixed product, with specials as low 3.89%.  This after rising to the mid 4% range during spring market. 

Adjustable / Variable rate mortgages have risen with the Bank of Canada’s two recent jumps in prime rate.  Though the discounts below prime have increased ( as low as .70% below prime ) so net effect is rates are around the same spot, at just over 2%.   Prime rate currently 2.75%. 

Some speculation that Bank of Canada may sit on sidelines as well with any further increases letting the .50% rise over the last few months digest.  Debt concerns in Europe, continued lack of growth in USA’s economy and possible slowdown in China may force Mark Carney to postpone his projected rises.