The number of people purchasing home mortgages is on the increase in our region after a rather slow winter, according to the president and CEO of Access Credit Union.

Larry Davey says activity was a bit slow in the first few months of the year for several reasons. 

"One is weather-related. It was a really cold winter and it was long and that often dampens the ambitions of people to change homes or even to do renovations. At about the same time there was talk about which way rates would go, there was concern about the trade wars and I think a lot of people just took a step back decided to see what was going to happen."

Davey said it now appears mortgage activity has bounced back nicely and is trending upward. One of the reasons for the upswing has been the Bank of Canada's move to reduce its five-year benchmark qualifying rate.

"They lowered that rate over the last couple of weeks, so that has also helped people to qualify for the house they're looking for, whereas they may not have qualified before that," said Davey.

The central bank's five-year benchmark qualifying rate is now 5.19 percent, down from 5.34 percent, marking the first drop in three years.

Meanwhile, Davey pointed out that an increasing number of people are selecting a fixed mortgage rate over a variable rate when purchasing a home.

A few years ago when interest rates were very low, variable rates were well below the fixed rates, but that gap has faded.

"Right now, a five year fixed rate is about 3.09% which is pretty low relative to a variable rate. Even if you are getting three-quarters under prime, you're paying just under 3.09%, and now you still have that concern that rates could go up. Whereas, if you're locking in for five years you have that peace of mind and you don't have to worry."

Davey added that when interest rates return to normal, variable-rate mortgages will likely regain their appeal, but for the moment, homeowners seem to feel that a fixed rate is better.