Your home is your
most important asset. This update from
Mortgage Dave will help you keep abreast of the latest news about financing
your home. Enjoy!
Well as the days shorten and the weather turn cool we can all breath a sigh of relief as it looks like we have weathered the storm of the economic collapse. The economy seems to be picking up and we are having record real estate sales.
The Bank of Canada reviewed their interest rates this morning and kept rates steady at .25%. This means the prime rate is staying at 2.25% for now. Here is the globe and mail article--------
Overnight rate holds steady, "conditionally"
As expected, the Bank of Canada announced that it will be maintaining the
overnight rate of a quarter per cent, with a continued "conditional commitment"
to maintain that until the second quarter of 2010.
In its official press release it stated that "recent indicators point to the
start of a global recovery from a deep, synchronous recession .... This
resumption of growth is supported by monetary and fiscal stimulus, increased
household wealth, improving financial conditions, higher commodity prices, and
stronger business and consumer confidence."
The Bank then went on to use language that it would seem still give it room
to manoeuvre before the second quarter of 2010 if need be. It said:
"However, heightened volatility and persistent strength in the Canadian
dollar are working to slow growth and subdue inflation pressures. The current
strength in the dollar is expected, over time, to more than fully offset the
favourable developments since July."
Growth, it said, is also projected to be "slightly higher" than previously
forecasted in the second half of this year, but lower overall.
full articelThe good news is that this puts pressure on the Bank of Canada to keep rates low even longer than until next summer as planned. This means the variable rate mortgages may see even better return with a prolonged term of low prime rates.
Fixed rates bumped up slightly making variable rates even more attractive.
The city is starting to gear up for Olympic fever and I think its going to be a very good winter for BC. Remember you still have a few months to refer a client to me to get your chance to win the Olympic closing ceremony tickets.
Make sure you read about my good friend Chelsea and her amazing company Sleepy Sheep below. Chelsea makes some amazing bedding products. Allison and I are both sleeping on her wool pillows and they are the best pillows we have ever had, cheers
