We are coming off the lowest interest rates in Canadian history right now. Rates have to go up from here, there is no doubt in the financial experts minds. The only thing that would stall this rate increase would be some real financial hardships in the future, and that may even backfire and raise rates. This being said if you ever wanted to lock your mortgage in this would be the time to do it. Sooner the better in my opinion. As for the effect on the Real Estate Market the increase in rates will cause a few buyers to rethink their future purchase BUT it will be temporary as we are still below the average fixed and variable rates and as the shock of any significant rate increase passes people will realize that the rates are still not that bad. If the rates start approaching double digits THEN we will see a significant effect on the Real Estate market. I hope this info helps, if you or any reader would like to discuss this topic or another in more detail please don`t hesitate to give me a call anytime. Abraham Niyazi - Mortgage Agent - Lic# M08010640 - Centum One Financial Lic# 10758 - Cell: 416-993-4082 - Office: 1-866-RATE-708 x 115 http://www.centum.ca/abraham_niyazi/ I have access to Banks/Lenders across Canada and 11 years experience in the industry.