![\"\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2019\/06\/canadian-housing-market-1.jpg\")
<\/a><\/p>\nPhoto: Kurt Bauschardt\/Flickr<\/a><\/em><\/p>\n Rates for the most popular type of mortgage in Canada have sunken to the lowest level in about two years, and they could be heading further south before 2019\u2019s end, suggests RateHub.ca co-founder James Laird.<\/p>\n The lowest five-year fixed-rate available on the rate-comparison site today is 2.64 percent from CanWise Financial, a mortgage brokerage also owned by Ratehub.<\/p>\n Laird had to go back to summer 2017 to find rates that low, and his outlook suggests they aren\u2019t about to increase again any time soon.<\/p>\n\n \u201cRight now, with all the information available today, it\u2019s the same to lower,\u201d Laird tells Livabl, forecasting where five-year fixed-rates should remain for the rest of the year.<\/p>\n Five-year fixed-rates are now almost at the same level as variable rates, which Laird notes is \u201cvery unusual.\u201d<\/p>\n Typically, variable rates are half-a-percent lower, which compensates for the fact that unlike a locked-in fixed rate, they can fluctuate.<\/p>\n \u201cToday, they\u2019re almost the same, which means that for you to take a variable rate, you need to have a very pessimistic outlook on the economy and rates and things like that,\u201d explains Laird.<\/p>\n \u201cTo take a variable rate right now, you\u2019re predicting the Bank of Canada is going to drop their key overnight rate \u2014 or else there\u2019s no point in taking a variable rate right now,\u201d he adds.<\/p>\n The overnight rate influences the mortgage market, in particular variable rates, which closely follow it.<\/p>\n The Bank of Canada will typically cut rates when the economy needs a boost, as lower rates fuel borrowing and spending activity.<\/p>\n While not many market observers are calling for a cut to the overnight rate this year, the general consensus is the central bank will stand on the sidelines, at least for now.<\/p>\n Late last month at a scheduled announcement, the Bank of Canada maintained the overnight rate at 1.75 percent, and in response, the Conference Board of Canada predicted that\u2019s where it will remain for 2019.<\/p>\n \u201cEven with the Bank noting that the recent slowdown in economic growth appears temporary, as they had expected, we maintain our view that the Bank will remain on hold into next year,\u201d Alicia Macdonald, the board\u2019s principal economist, says in a statement<\/a>.<\/p>\n Today, Desjardins Senior Economist Benoit P. Durocher, predicted the rate environment will remain consistent for the next several months, although he noted global uncertainties, particularly in terms of trade conflicts, could spark a move from the central bank at some point.<\/p>\n