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Issue No. 11                      "Representing Your Best Interest!!" September 23, 2009
Interest Rates Coming Down Again!

Another Small Decrease in 5 Year Fixed and Variable Terms!

 The fixed rates continue to trickle downward with the lenders coming out with Quick Close products once again, signalling they feel secure in rates staying put for awhile! You heard it here first, but I am predicting a significant drop in the stock markets in late Sept - October, with a rebound going towards the end of the year, meaning that rates will remain at the current levels!  Stay tuned, and read the article below!!
Rod Minnes
Managing Broker

Rates as of Sept 23, 2009
Fixed Rate Mortgages    
6 month convertible            4.60%
1 year open                           6.55%
1 year closed                        2.75%
2 year closed                        2.90%
3 year closed                        3.45%
4 year closed                        3.79%
5 year closed                        3.89% 

Variable Rate Mortgages    
5 year closed - Prime* +.20%
5 year open   - Prime* + .80%

Home Equity Line Of Credit

Please call for product availability and rates.

Information from sources deemed to be reliable. Product availability and borrower qualification apply.
*Prime = 2.25%
Rod Minnes
Global West Mortgages
Still not too late to buy a home!!
But have you've missed the lowest prices!!??
By Marty Hope, Calgary HeraldSeptember 19, 2009
What's going to happen to housing affordability?
Let's just say that if you haven't bought by now, it's very possible you might have missed the bottom of the market.
For something like 24 months, builders have been cutting prices and offering other incentives, while lenders have been holding mortgage rates down at historically low levels.
At the same time, the federal government was dangling its own ownership incentives to first-time buyers.
But now the worm is turning. Builders are already announcing price hikes due in part to rising materials costs. There are also suggestions mortgage rates might begin to move up --nothing serious, but an increase, nonetheless.
It was in this scenario that RBC released a report on affordability from April to June.
The bank says the three-month period marked the fifth straight quarter in which affordability improved at the national level -- down to a point where it took just 39.1 per cent of pretax household income to pay the monthly mortgage, property taxes and utilities on a bungalow, or 44.4 per cent on a two-storey home.
Alberta checked in at 33.5 per cent of pre-tax household income for bungalows and 36.6 per cent for a two-storey home, both well below the national average.
In its report, RBC says affordability has now been "restored" to pre-housing boom levels -- those prevailing in late 2005 and early 2006.
But hold on, here it comes: "However, this restorative phase of the affordability cycle is likely running out of steam," says the report. "The two major contributors to the significant improvement during the past two years or so -- the decline in rates and the drift down in prices -- appear to have reached turning points."
After hitting "generational" lows in the spring, some mortgage rates -- including five-year fixed mortgages on which the RBC affordability measures are based -- rose modestly in the summer.
As well, the earlier generalized weakness in property prices has largely dissipated in recent months in most parts of the country.
Some areas have even begun to register gains again.
Yet this by no means suggests affordability has been tossed out with the wash water. There's no need to panic -- ownership opportunities are still there.
As the bank says: "While those shifting trends will cease to drive affordability improvements, the next phase in the coming quarters will not necessarily be one of wholesale deterioration with continued expected growth in household income providing some offset.
"More likely, the period ahead will be marked by a certain levelling off in affordability."

B.C. posts strong housing sales for August!
B.C.'s average MLS home price in August was $471,078, almost 12 per cent above the $421,685 recorded in the same month a year ago. The big boards of Metro Vancouver and the Fraser Valley saw the biggest increases in sales, which drove the provincial results.
 By the end of August home sales recorded through the Multiple Listing Service across British Columbia had more than equaled the number of sales recorded during the same period of 2008, the B.C. Real Estate Association reported Friday.
That came as a result of strong sales in August, a month that saw 8,565 units change hands through MLS, which was 66 per cent higher than the number of sales across the province in the same month a year ago.
Sales results, however, have been uneven as the province's resource-dependent regions that have been more deeply bit by the recession haven't fared as well as the Lower Mainland and Victoria.
"Every region has shown improvement since the beginning of the year," Cameron Muir, chief economist for the B.C. Real Estate Association, said in an interview.
"But when you look at the south coast and Victoria, you see a sharp upturn. In the Interior or north, it's more of a gradual increase in terms of market conditions."
And in the Lower Mainland and Victoria, the markets have experienced greater price stabilization that helped raise B.C.'s average home price in August 12 per cent to $471,078 compared with $421,685 a year ago.
Muir added that current year-over-year comparisons pit this year's sales rebound against the beginning of last year's precipitous decline in sales, so "you're going to see some wild swings."
And while current sales are driven by the pent-up demand of buyers who sat out the market decline of last fall and winter, but are now jumping back in to take advantage of historically low mortgage interest rates and lower prices, he doesn't expect the rebound to continue as strongly.
"Record-setting levels are unlikely given the economy is crawling out of recession and full recovery of the B.C. economy is still some distance away," Muir said.
Still, Muir said the recovery B.C. has seen in real estate sales is a positive sign of growing consumer confidence and evidence that the household financial conditions of buyers are "in relatively good shape."
"The expectation is that typically in a recession, consumers are the first out of the gate [to start spending] to signal that [economic] recovery is soon to follow," he added.