Prime remains 2.25% Fixed rates may blip^
Surrey, BC - May 28, 2009 - The Bank of Canada meets next on June 4th, when they are expected to leave Prime alone. We hear rumblings fixed rates may blip up due to Bond yields blipping up with more money moving into the stock markets over the past few weeks. Expect the 5 year to move from around the 3.75% range to the 3.95% range.
We expect to see these blips over the next year, with a small increase or decrease in the fixed rates depending on which way the US stock market moves. Until the US has a real turnaround in their Real Estate market however, rates will stay down overall...as previously said, we expect until the third quarter or end of 2010 that rates will be down. Prime will stay the same until at least mid way through 2010 or longer.
Variable rate mortgage products continue to make the most sense in this environment, and we are seeing some more competion amongst lenders, with most at Prime + .60% (2.85%) now, and one at Prime + .40% (2.65%). If you are in a variable currently, stay in it! If you are in a fixed, please touch base with us and have a review of whether it makes sense to move to a variable at this time as part of your mortgage strategy.
As always, having a Mortgage Strategy in place is always the best plan!
Call us for a no obligation review at anytime.
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