Although this is great news for my variable mortgage, an upward move on rates may be an indicator of economic confidence from the boc. To hear that rates may hold until the end of next year could indicate that the boc feels that the economy will continue to remain stale for much of 2011.
Rates have been great for a while now, but it certainly didn't support a strong real estate market in the back half of 2010, and if the trend continues it isn't a great indicator for 2011 either.
Low rates can get first time buyers into the market, but I'd rather see an uptick in buying due to economic prosperity. More stability in that, which consequently would likely mean higher rates.
Lots of different factors beyond real estate play into why the boc adjusts the rate, so it's really tough to predict where things will go.
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