This may not be as a sophisticated answer as you may expect, but from talking to my mortgage broker connections, this is how I see it.

There are two different institution dealing with interest rates etc. There is a Bank of Canada who controls the "Bank Rate", the overnight rate, and then there is the Government of Canada who controls the interest rates.

Well, there are also the banks and lending institutions that use these guidelines and set their own mortgage lending rates as they see fit.

The Bank of Canada has set dates for announcing their bank rate and they are designed to keep inflation in check and control the economic trends.

Government of Canada on the other hand has to raise money for it's operations and the most common is to sell government bonds. These are guaranteed investments and in tough times are a pretty solid investment, and favored by more cautious investors. Bonds earn you money trough yields, in other words interest.
Investors move their money around always looking for the best return on their investment.

When the stock market starts moving, investors tend to gravitate to stocks and sell their bonds, or don't buy them anymore. What is the government going to do? They need their money to run their business and in order to get the investors back, they increase the yields.

Since the mortgage rates have close ties to the bond markets, with the spread, the difference between the yield and interest rates of up to 2% the longer term mortgage rates will rise accordingly.

This may be a simplified explanation of where we are going, but everything points to up!

If you are a buyer and thinking of purchasing in the next few months, get yourself appoved and watch the market. Nobody has a crystal ball, but this kind of propection does not cost you anything.

If you are looking to Buy or to Sell real estate in Vancouver area, give me a call. My consultations are FREE. The benefits to You, may be worth a lot of money.
Call Jeff Stark at 604-506-8481 or email me at jeff@jeffreystark.net or visit my web site at www.jeffreystark.net