Good Afternoon,
Here is a mortgage rate update from my mortgage team, if you need a mortgage or refinance their contact details are listed below.
The biggest challenge in the markets remains the uncertainty presented by the European debt crisis. With such a wide range of possible outcomes, capital markets are behaving in a much more cautious manner and this is likely to continue into the foreseeable future as Europe’s leaders continue to take baby steps toward a potential resolution of those problems.
In the meantime, spreads at which mortgages can be sold in the market will remain at the wider levels that have been observed since the start of September.
The bond yield continues to create uncertainty in when it comes to how lenders price their fixed rates. As a result of this, and in addition due to the time of year, the spread has increased (from 1.75-1.95) to 1.85 – 2.10.
3 Year Fixed 2.99%
4 Year Fixed 2.99%
5 Year Fixed 3.29%
3 Year Variable Prime – .10%
5 Year Variable Prime – .20%
5 Year Cash Back for down payment (100% Financing) 5.29%
Lenders Prime Rate: 3.00%
Upcoming Bank of Canada meeting’s scheduled for: December 6, January 17, March 8
Canadian 5 year bond yields markets -0.09100 bps to 1.41600. The spread (based on the 5 year rate published rate of 3.39%) is at mid-range at 1.974. The spread based on the 5 year fixed rate special of 3.29% is at the low end of the comfort zone at 1.874%.
· The rate of return on the bond can be read through a yield curve. If there is an increase in bond yield that continues to go up, the lenders spread will shrink which could be a trigger for interest rates to rise. Alternatively if the bond goes down the increase in the spread usually triggers a rate reduction. The current spread is 1.85 – 2.10
If you have a client that is interested in getting pre-approved pass on this information and have them call us today to get locked in for 120 days (February 29, 2011) with the lender guaranteed lowest contract rate.
Have a great day and remember… Our commitment is to offer you and your clients convenient, professional service focused on building long term relationships
Your Mortgage Team
Tom and Mandy Szucs
Mandy Szucs, AMP | Mortgage Broker (FSCO Lic M08002843)
www.OakvilleMortgageTeam.com
Real Mortgage Associates (FSCO Lic 10464)
‘(905) 469-0766 | 6(905) 469-2701
MandySzucs@RMABroker.ca
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