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What's happening with interest rates?
Tom Fennel Yahoo Finance
With so much volatility in the market, should you lock in your mortgage? It's hard to say, but studies have concluded you are better off holding a variable mortgage. Then again, those studies also include periods of extremely high interest rates, but with rates now at historic lows they would only go marginally lower.
Whether to lock in or not is a common question. About one-third of Canadian mortgages are variable.
One thing is certain. If you hold a variable mortgage, you can breathe a little easier knowing Carney won't be raising rates anytime soon. Ian Lee, director of the MBA Program at Carleton University, says this is because of the ongoing failure by the European leadership to address, let alone resolve, the growing Eurozone debt crisis and the ongoing inability of the U.S. political leadership to seriously address their annual $1.5 trillion deficit and $14 trillion debt. "This clearly suggests," says Lee, "that Governor Carney will think many times before raising interest rates now or in the fall."
For the full article visit my blog located at www.MyBcMortgage.ca
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