The market seems to be cooling off a little. I think that was the plan with the HST and CMHC changes. With the uncertainty in Europe and the economy moving forward gradually, it looks like the increase in Prime rate will be slow and steady over the next 18-24 months.
The Victoria market has a large number of homes on the market, around 1000 over the average. Lots of listings mean more selection and a softening in the market.
Fixed rates are holding steady. The last 3 weeks has seen the bond market decreasing slowly and 5 year fixed rates coming down slightly. Some lenders are still holding at 4.49%, while others have decreased to 4.29%.
The variable rate mortgages are very attractive now. Prime minus .60% with the slow increase until the end of 2011 allows an opportunity to pay down your principle quickly in the beginning of the mortgage when usually the majority of your payment is interest.