Canadians have been speculating about the historically low interest rates, and where those mortgage rates were headed, ever since the Bank of Canada first dropped them so low in September of 2010. Today, almost eighteen months later, those rates are still very low and some can’t help but continue to think that they’re about to spike any time. Others though, think that they’re going to stay low for some time. So, where are mortgage rates headed in 2012?

For the short term, we know that the mortgage rates in Canada are going to stay where they are until March, as per the announcement by Bank of Canada governor, Mark Carney, earlier this month. It will be in March that the BoC will meet again to determine whether or not there will be any change in the interest rate. But March isn’t very far away, and that still has many people asking: where are mortgage rates headed after that time?

Most likely, those historically rates will remain low for a historically long time; many have even predicted as long as until early in 2013. Mr. Carney continues to cite an uncertain global economy, the financial crisis in Europe, and a recovery in the United States that’s been slower than expected, and these are things that are not likely to change in the next six months. Mr. Carney and the government of Canada also continue to warn Canadians against the rising amount of household debt we’re taking on, and keeping interest rates low is another way to help control and reduce those debt levels.

It’s difficult for anyone to predict with 100% accuracy where mortgage rates are headed in 2012,that is any further than March. But it is logical to think that as long as the global economy remains unstable and uncertain, our rates will stay right where they are – at least for the better part of the year.