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Issue No. 15                  "Representing Your Best Interest!!" October  22, 2009
Global West 5 year Rate 4.19%!!

Rates Steadied this week, with the banks hedging in enough increase to hold for awhile!

 Whilst the banks did not have to increase the rates by as much as they did to stay within their target yields, they did build in enough to allow us not to have another increase in rates for awhile, which is good news for the Real Estate Market as we head toward year end!
We still have very attractive long term rates and the variable products have crept back to Prime with no additions! 
Call us today!! 
Rod Minnes
Managing Broker

Rates as of Oct 22, 2009
Fixed Rate Mortgages    
6 month convertible            4.60%
1 year open                           6.55%
1 year closed                        2.55%
2 year closed                        3.30%
3 year closed                        3.65%
4 year closed                        4.09%
5 year closed                        4.19% 

Variable Rate Mortgages    
5 year closed - Prime* +.00%  ****
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
 Low inflation makes rate hike unlikely: economists
 By John Morrissy, Financial PostOctober 19, 2009
Dwindling inflationary pressures are likely to factor heavily into Tuesday's Bank of Canada rate-policy decision, removing any need for the central bank to raise borrowing costs before its target date of the middle of next year, analysts say.
"The critical thing is inflation," says Michael Gregory, senior economist at BMO Capital Markets.
With the latest report Friday from Statistics Canada showing consumer prices continuing to fall, the central bank is likely to lower its most recent projection for inflation to run at 1.4% annually, Mr. Gregory said.
"Pushing expectations for core inflation down to 1.3 or 1.2% may not be a lot. But it will have market implications because the commitment to keep rates unchanged until June 2010 is based on inflation, and if inflation is getting further behind their target of getting back to 2%, that means the commitment is a little more ironclad," Mr. Gregory said.
"The bottom line of the statement they issue," said Avery Shenfeld, chief economist at CIBC World Markets, "is what they say about their conditional commitment to keep rates on hold to the middle of next year.
"If the markets start to take the bank at its word, it might actually ease a little bit of pressure on the Canadian dollar to appreciate, because some of that was based on expectations that the Bank of Canada would follow the Bank of Australia in being the first to raise rates," Mr. Shenfeld said.
Scotia Capital economists Derek Holt and Karen Cordes said in a research note they consider it a "remote possibility" that the Bank of Canada would follow Australia in raising its target for the overnight lending rate from the current 0.25% before year-end.
Australia, they pointed out, differs from Canada in that 24% of its exports go to China, where growth is expected to expand by 8% this year. In Canada, only 3% of exports go to China but 75% go to the U.S., where economic activity is expected to contract by 2.5% this year.
The bank may revise upward it growth forecast for the economy, which will be detailed in the bank's Monetary Policy Report on Thursday, but is unlikely to express concern about Canada's rising housing market, as that growth has not been consistent across the country and has yet to show up in the new home market, Mr. Gregory said.
Observers also expect the bank to express concern about the rising Canadian dollar, in order to shake speculation out of the market that has driven the loonie up 26% since early March to above 97 cents US.

Rod's Musings!!!
The economic recovery everybody has been waiting for in my opinion has not arrived yet! Despite all the media stories, we are not out of the woods and there are some rocky periods ahead, the Canadian Dollar the main culprit to slowing that recovery down! 
In saying that we are not in recovery mode yet, the good news is that the light is at the end of the tunnel, with forecasts from the Bank of Canada looking to middle to late 2011 for the full recovery to happen! In the meantime, a stable but  cautious economy will remain, and it is my belief that rates will also remain steady!
The Bank of Canada can expect to hold rates until mid next year, and the Bond market yields that affect our long term money may increase slightly, but will still leave us in great position to help the affordability we all strive for!
As we move forward toward the end of 2009, while a trying year, it has rewarded us with knowledge and experience that can only help our families and businesses as we move forward!