Is the Fed's quantitative easing working?
Maybe....after the meteoric rise in 5 yr yields and interest rates on mortgages over the last 3 weeks, the 5 year bond yields are easing slightly back down to 2.54% from a closing high of 2.81%.
The big banks last moved their five year rates back when the yields were at 2.69% so does this mean rates may come down? I wouldn't bet on it just yet, but I think this means things will remain stable for the next few months. No drastic up or downs for now.
Wednesday, June 24, 2009
Tuesday, June 23, 2009
Friday, June 12, 2009
BoC to hold rates til June 2010
In a recent speech Mark Carney, Bank of Canada Governor, has stated again the BoC will not be raising the prime rate...
He said "The Bank of Canada has no plans to adjust its rates until at least next June as it attempts to keep inflation at check below two per cent. "
This is good news for those mortgagees in Variable rate products. Now if the 5 year bond yields would settle down we may see some leveling off in the fixed rate market, in which we have seen a jump almost 1%. Current 5 year average is 4.49% some lenders are holding at 3.99% but who knows for how long.
If you are in the market, contact your broker and get a preapproval to hedge your bet for the 90 to 120 days just in case!!
He said "The Bank of Canada has no plans to adjust its rates until at least next June as it attempts to keep inflation at check below two per cent. "
This is good news for those mortgagees in Variable rate products. Now if the 5 year bond yields would settle down we may see some leveling off in the fixed rate market, in which we have seen a jump almost 1%. Current 5 year average is 4.49% some lenders are holding at 3.99% but who knows for how long.
If you are in the market, contact your broker and get a preapproval to hedge your bet for the 90 to 120 days just in case!!
Tuesday, June 9, 2009
Bond Yields going up.....
Bond yields have hit 2.71% today up 20 points from yesterday so.....
Fixed rates will continue to rise, and we may even see shorter term rates start to creep.
http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2009/06/bond-yields-jump-again.html
http://www.bankofcanada.ca/en/rates/bonds.html
Fixed rates will continue to rise, and we may even see shorter term rates start to creep.
http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2009/06/bond-yields-jump-again.html
http://www.bankofcanada.ca/en/rates/bonds.html
Friday, June 5, 2009
Interest rate update
I have been warning for a while and boy it's happened fast!
Current rates:
5 Year Fixed 3.99 - 4.09%!
3 Year Fixed 3.15%
1 Year Fixed 2.75%
Closed Variable 2.65%
If you were waiting for the bottom, it's here!
http://www.peterlmckinnon.com
Current rates:
5 Year Fixed 3.99 - 4.09%!
3 Year Fixed 3.15%
1 Year Fixed 2.75%
Closed Variable 2.65%
If you were waiting for the bottom, it's here!
http://www.peterlmckinnon.com
Wednesday, June 3, 2009
Monday, June 1, 2009
Fixed Rates UP, Variable Down?
The Royal Bank is the first of the big 5 to raise its rates. They have set thier benchmark posted rate for a 5 year fixed at 5.45% up 20 basis points. This brings their "discounted" specials to 4.15% . http://www.globeinvestor.com/servlet/story/CNW.20090601.C9687/GIStory/
Most of us have expected this due to the rise in the bond yield which has hit 2.56. It is olny a matter of time til the rest follow.
Don't worry, we have plenty of lenders still holding below 4.00% and I am still able to put my cients in at 3.60% OAC, but I would suggest anyone looking to purchase or renew to get an application in now and hold your rates for the next 90 -120 days depneding on your bank or broker.
If you are still feeling lucky or just love the variable products, rates are coming down! Short term money is getting cheaper as the stimulus packages take effect, and with the BOC expected to hold the rate at 0.25% on Thursday, we have lenders dropping these to bank prime plus 0.40%. 2.65% for a closed 5 year VRM!
Going to be a great summer for real estate and finance!
Most of us have expected this due to the rise in the bond yield which has hit 2.56. It is olny a matter of time til the rest follow.
Don't worry, we have plenty of lenders still holding below 4.00% and I am still able to put my cients in at 3.60% OAC, but I would suggest anyone looking to purchase or renew to get an application in now and hold your rates for the next 90 -120 days depneding on your bank or broker.
If you are still feeling lucky or just love the variable products, rates are coming down! Short term money is getting cheaper as the stimulus packages take effect, and with the BOC expected to hold the rate at 0.25% on Thursday, we have lenders dropping these to bank prime plus 0.40%. 2.65% for a closed 5 year VRM!
Going to be a great summer for real estate and finance!
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