Texts: Please search for the following mortgage rates of a lender (e.g., a commercial bank, a credit union, etc.) in Canada:
i. A two- or three-year fixed mortgage rate
ii. A five-year fixed mortgage rate
iii. A variable mortgage rate
(a) Briefly explain the difference between a fixed-rate mortgage and a variable-rate mortgage. (Hint: Please Google the terms if you do not know them already.)
(b) Please rank the three rates you found.
(c) According to the ranking in (b), what are the market's expectations on future short-term interest rates? Please explain.
(d) If you were to take a mortgage, which one would you prefer? Please explain your choice. (Hint: You should discuss under what expectations of future interest rates, you prefer one choice over the other two.)