Best mortgage rates - Ottawa

Ottawa Mortgage Rates Will Remain Relatively Flat

The Canadian Mortgage and Housing Corporation (CMHC) has reported in their latest Ottawa Housing Association Market Outlookthat Posted mortgage rates eased by about 50 basis points in the first four months of this year, although rates in late April were 30 to 35 basis points higher than they were 12 months prior. Mortgage rates are expected to trend marginally lower throughout 2008, but will be within 25-50 basis points of their current levels.

For 2009, posted mortgage rates will begin to drift up slightly as the year progresses. For 2008 and 2009, the one-year posted mortgage rate is forecast to be in the 6.50-7.50 per cent range, while three and five-year posted mortgage rates are forecast to be in the 6.75-7.50 per cent range.

Ottawa House Prices Still Increasing Above Inflation

The average price for home in Ottawa finished 2007 at at $273,058. Even after adjusting for inflation, prices had been increasing by an average of 5.5% since 2000. CMHC forecasts that by the end of the year prices will come more in line with inflation.

The Ottawa job market remains healthy, however, the region is now experienceing less and less affordability resulting in some potential home buyers deciding to reconsider the purchase of a home. The latest states display that the the growth rate in the necessary household income to buy a propery has increased versus the actual income for the average household.

Towards the end of Q1 2008, some popular areas around and within in Ottawa were showing higher price gains and it is expected that they will continue towards the rest of 2008. Look for the West End, Orleans and the Downtown core to outperform other areas.

CMHC Ottawa housing market & Ottawa mortgage rate forecast