Today we saw a rise in the bond market. Some lenders have reacted by raising their Fixed rates, although it seems some are holding off for the time being. What does this mean to you? Enjoy the holiday season, but stay tuned for more information. Anyone on the fence should be contacting me immediately to hold these historically low rates for 120 days. Happy Holidays!
Powered by Twitter Tools
With the Canadian Real Estate Association’s release of November housing numbers Tuesday, talk of a 
bubble is heating up among economists and industry professionals.
The CREA report said existing homes sales in November increased by a whooping 73 per cent compared to a year ago and prices rose almost 20 per cent.
“We’re on the bubble of a bubble,” Bank of Montreal economist Doug Porter told The National Post, sharing his worry about a potential surge of home sales before the central bank raises rates and the new harmonized sales tax is introduced in B.C. and Ontario. “We could see a bit of a buying frenzy coming this spring…followed by a “pop” in 2011?”
But despite continued fears that skyrocketing numbers signal the formation of an asset bubble, some insiders said the dramatic rise is due to how low the market was at this time last year. The number of listings also went up by five per cent from October to November, which is expected to help ease price increases.
“The numbers look huge, but you are coming off such a bad year,” TD Securities economics strategist Millan Mulraine told The Globe and Mail. “You’re seeing big numbers in the recovery, but the pace and momentum has eased. You could definitely say it’s not driving as fast as it was a few months ago.”
Another argument against a bubble came from Genworth Financial Canada president Peter Vukanovich, who told The National Post that because more consumers have been switching into fixed rate mortgage products, they will be less exposed to expected interest rate hikes.
Powered by Twitter Tools
As widely expected, the Bank of Canada held the target for overnight rate at 0.25%, and reiterated its commitment to keep rates at their effective lower bound through the second quarter of 2010. The Bank recognized that while the global economic landscape has been slightly more positive, there are a significant amount of ‘fragilities’ still out there; enough to justify keeping rates where they are. More than likely, the Bank of Canada will stay put past its conditional commitment of June 2010 and the first rate hike will not come until the fourth quarter of next year.
Powered by Twitter Tools
We are at what many are calling “the bottom” for Fixed & Variable mortgage rates. With the BC real estate market still going strong, and the Vancouver Olympics right around the corner… it looks like it’s going to be an exciting start to 2010.
Thinking of getting into a home soon, or refinancing sometime between now and springtime? Give me a call to discuss holding today’s GREAT rates for 120 days and enjoy peace of mind all winter!
As of today, here are some of the best rates* available to Canadians:
VARIABLE RATE:
3Yr @ 2.00%
5Yr @ 2.15%
FIXED RATE:
5Yr @ 3.89%
CALL ME TODAY!
*Rates are based on approved credit and are subject to change without notice. They are based on the most current lender information and may vary based upon individual circumstances.
