We are expecting the rate to increase in the next 24 to 48 hours.
There is a lot of financial indifference in the markets...as many of the Economists have stated… the Bond Market is reacting to this…
I would suggest that investors (cash guys) are demanding more for their money, even in these times. Thus over the last few weeks I have been monitoring the long term Bond Market and it has risen almost 50bps and today it is up 3 bps alone…. This means the spread on mortgage rates is lessening and in turn pushing lenders to raise rates. I believe we are in for some interest rate hikes over the next 4 - 5 weeks, which may mean a couple more increases like we are seeing right now. Over the last week we have seen some lenders raise interest rate s by 30 bps bringing them above the 4.25% mark, I am sure other lenders will follow.
I would urge you to contact those clients that are 'sitting on the fence' because they believe one or both of the following:
" I think rates are going to go lower and I don't want to pay more than I have too… "
"… house prices are coming down, I want to wait and get best deal…"
I am sure there are many other comments but they all center around the same theme… LOWER… This is the time to get your applications in… lock the rate… the bottom is rising. I want to ensure that you are able to assist your clients in getting the best deal… and NOW is the time.
Doug Atkinson 421 Pacific Street, Vancouver, BC, V6Z 2P5 Phone : 604-219-9977 fax 604-685-2807 email: firstname.lastname@example.org Your Vancouver Real Estate and Mortgage Specilaist. Visit my Downtown Yaletown office.