MORTGAGE RATES CONTINUE TO CLIMB

How high will they go? It depends on the Bond market and the 5 year Canadian bond yield.

The best 5 year has gone from 2.89% to 3.39% in only 3 weeks.
This is happending because of the turmoil in the US surrounding the government possibly cutting the
economic stimulous program. The bond prices have gone up as a result and Mortgages are funded by bonds.

This happened 3 years ago and rates went from the low 3.29% range to as high as 4.89%.
They did trickle back down over a 6 month period.
My advice is to work through a broker and get a rate set through pre approval to hold todays current rates.This will stop the bleading.

I think these rates a nearing a peak and clients serious about buying a home or refinancing should be prepared to shop hard or use a broker. There are still some great deals out there. If rates drop in the next 90-120 days, the client will get the lower rate provided they haven't closed their deal.

Another Rate Hike

Hold onto your hats, rates are rising again tonight at midnight.
Several Banks and other mortgage lenders have anounced another increase in the 5 year fixed term.
Most companies will charge 3.19% for a 5 year mortgage tomorrow.

Thats why I preach pre approval all the time.
2 weeks ago we had 5 year money at several lenders prices at 2.89% and a rate guaranteed for 120 days.

On an average mortgage in Burlington, this increase of 30 bps can cost up to $75.00 a month.

Hopefulyl the Bond market will settle down and allow competition amongst the banks to draw the rate below 3% again.