It’s been a crazy couple days in the bond market. Here’s some additional info to chew on: The bond yields have taken another huge hike today. At last check, the bond yield is up to 2.86%. That is a jump of 22 basis points today and 44 basis points in the last two days. The Spread is down to 1.13% based on that update. The banks fixed-rate products are largely dependent on what is happening in the bond market. In light of this, some of them have already raised their 5-year rate by 35 BPS.
Are we in for rate increases? What’s the best decision to make in light of this recent buzz? Let’s talk about it! Each person’s situation is different so please feel free to give me a shout.
This is what’s been digested from recent economic reports, real estate analysis and general observation:
- Our housing market has rebounded sharply; side-stepping the worst of our recession.
- After plummeting last fall, sales of existing homes have rebounded by a large margin. Canadian housing sales have surged, leading to a rebound in resale home prices.
- After being largely out of sync since early this year, the market is now bursting with activity; being bolstered by better pricing and low financing costs. You can look at it as having a much later than usual ’spring rush’. This demand could slow as we enter November.
- While home listings are set to rise, home sales should be well enough supported to generate modest price gains in the near future.
- Recent Bank of Canada statements indicate that it is closely watching the housing market, expecting it’s recent strength to be ‘temporary’.
- If real estate activity does not cool, it may prompt the Bank of Canada to tighten it’s policy earlier and more aggressively than earlier anticipated.
Are you currently in a Variable Rate Mortgage, a Prime Plus Mortgage, or a Fixed Rate Mortgage?
Do you have 18 months or less remaining on your term?
If so, contact me right away to talk about locking in at some of the lowest Fixed Rates we’ve seen in years. By years, I mean that we are hitting some of the lowest rates in history!
A Fixed product might be the best option for you. Let’s discuss it. Talk soon!
