Mortgage Rates

Have we seen the bottom?

This past week has been interesting. The Canadian dollar soared 7 cents to over 91 cents US. Gas prices went up almost 7 cents per litre since Wednesday. I just read an article talking about a very active bond market. Now mortgage rates are on the rise to 3.79% from 3.55%. Is this the end of low rates? I would think by July we will be above 4% and steady. I can not see our rates up to the 5.9% we saw over the past two years but nobody really knows. rates go up and rates go down.

4% is still a good rate, but what is the impact to those buyers sitting on the fence?

Mortgage on a $300,000 principal  25 year Amort Monthly Payment
3.55% on 5 year closed  $1,505.74
3.79%  $1,544.10
4.0%  $1,578.06
Scotia banks Posted 5 year rate of: 5.25% $1,787.75

If you are sitting on the fence the financial market is definitely showing signs of rate increases. The Red Deer real estate market is strong. Still lots of choice for buyers and still lots of sales. Buy one today before you are paying more interest.

Thanks for reading.

Ken Devoe,

Century 21 Advantage

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