April 6 2010 -
Lynne Engelman and Kevin Giddings have less than 120 days to find a home.
The Calgary couple won't be homeless if they strike out, but they will be without a near-record-low five-year mortgage rate. They were pre-approved for the 3.69% guaranteed rate just before all the major banks jacked up their rates last week.
If they had to go to the bank today to borrow, the five-year rate would be more like 4.25%, and that figure is expected to rise in the next four months.
"We knew rates wouldn't continue to be at these all-time lows so I said, ‘let's lock in and hopefully we can find a home,' " says Mr. Giddings.
Rising interest rates on the long end of the mortgage market are just one more catalyst for a spring housing market expected to reach a fever pitch.