October 28, 2008
Interest rates have stayed much the same this week while the stock market and the Canadian dollar have lossed ground significantly. Central Banks are still cutting rates with the US Federal Reserve expected to decrease their rate by .25% to .50%. There should be a few more decreases in the Bank of Canada rate coming in the next year.
The bond market is also pricing in a decrease in the longer term rates. Rates are low, Real Estate values are down from their highs. Investors are going to be seeing opportunity!|
|
Bank Prime Rate 4.00% |
|
|
Term |
Best |
Bank Posted |
|
1 year |
4.49% |
6.25% |
|
3 year |
5.25% |
6.75% |
|
5 year |
5.69% |
7.20% |
|
10 year |
6.10% |
7.80% |
|
25 year |
6.75% |
n/a |
Interesting mortgage fact of the week:
Lenders who all but closed their doors when the first hints of credit crisis trouble started to show have now reversed their direction and are re-introducing their products. Specifically, most banks stopped or restricted lending on Lines of Credit applications and some variable mortgages. We are seeing the results of steps taken by the Bank of Canada to ease the lack credit available between lenders. Good signs.
Courtesy of
Laura Stein, Mortgage Specialist
Telephone: 604-657-6535 ext 222 fax: 604-530-1934
Tell her Lyn sent you!
Tell her Lyn sent you!
