In our last week's Blog, 2013 Year End Review of Mortgage Rates in Canada, we took a look at changes in mortgage rates; our blog today looks to the future of Mortgage Interest Rates in Canada for 2014 with key forecasts from Bank of Canada and CMCH. Bank of Canada Overnight Rate The BOC Overnight Rate is expected to stay at 1% throughout 2014 and will not change until mid 2015. The overnight rate affects variable mortgage rates. Canadian Mortgage Housing Corporation CMHC forecasts, that although there is be a slight increase in mortgage rates, mortgage rates for 2014 will remain at historically low levels and by the end of 2014, they will be somewhat higher than in the third quarter of 2013. According to CMHC’s base case scenario for 2013, the average for the one-year posted mortgage rate is forecast to be within 3.00 per cent to 3.50 per cent, while the average for the five-year posted mortgage rate is anticipated to be within 5.00 per cent to 5.50 per cent. For 2014, the average for the one-year posted mortgage rate is expected to rise and be in the 3.25 per cent to 3.75 per cent range, while the average for the five-year posted mortgage rate is forecast to be within 5.25 per cent to 6.00 per cent. Source: CMHC - Housing Market Outlook 2014