Last week, the Bank of England's monetary policy committee (MPC) announced that interest rates were to remain at 5.5 per cent.

The Federal Reserve is taking into account several measures, such as proof of income from borrowers, no penalties for early mortgage payments, and a guarantee that property taxes and insurance bills are covered to recover high-risk mortgages market.

Fixed mortgage rates moved higher across the board this week. The average 30-year fixed mortgage rate rose to 6.25 percent. According to Bankrate.com's weekly national survey of large lenders, the 30-year fixed rate mortgages had an average of 0.27 discount and origination points.

The number of Canadians considering combination mortgages - those with both fixed and variable rate segments - is on the rise, according to RBC's 14th Annual Homebuyers Survey. Over one third (38 per cent) of Canadians who are likely to purchase a home within the next two years plan to take out a combination mortgage, compared to 30 per cent in 2006.