Below is a link to today's rate announcement from Bank of Canada. As expected, Prime remains unchanged and there is nothing to suggest that they intend to move in either direction in the near term. Several "experts" have indicated they expect BoC to reduce rates early next year. The North American economy is showing a gradually improving trend. If that persists, I think the Bank will stay on the sidelines and leave rates unchanged, probably into 2013.
The BIG wildcard remains Europe. The endless debate over sovereign debt solutions is like 'Nero fiddling while Rome burns'. The longer it drags on, the more confidence is lost and the greater the danger that the financial system seizes up. Prime will likely stay low but the factor under or over Prime could deteriorate if the Banks lose confidence in each other.
Both fixed and variable look very good from a borrowing standpoint and are likely to be that way for a long while. I think this will keep the housing market stable
read press release