Here is your current mortgage interest rate update. Anyone sitting with a VRM (variable rate mortgage) or floating rate with Prime will find this useful. Otherwise those looking at a fixed rate will benefit with this basic information. The Bank of Canada is meeting this Tuesday December 8th, 2009. Most of us in the industry don’t expect the overnight lending rate to go anywhere for at least another 3-6 months. Inflation essentially control’s the overnight lending rate. If the rate of inflation comes near or exceeds the 2% benchmark, then interest rates are raised to curb inflation. As for fixed rates, these are simply dictated by the bond yield. The bond yield goes up and fixed rates usually follow. What causes the bond yield to increase you ask? Many factors but the definitive factor in this recent increase was the good economic news from the 79,000 jobs created in the month of November. For more details on me, please go to http://www.jessijohnson.ca