Mortgage Market Update

Date: April 5th, 2012

Keeping you updated on the Mortgage Market

V39060: Government of Canada marketable bonds, average yield, 3-5 year
Low 1/31/2012 1.15

Average 1/02/2012- 03/20/2012 1.32

High 03/20/2012 1.61

The past week was uneventful in the bond market. No real movement one way or another. With the "rate wars" over for the moment, lender's have increased their 5 year fixed rates. Most lender's have 5 yr fixed in the 3.39-3.59% range.

We still have 2 lenders offering 10 year funds at 3.89%, a wonderful option for those concerned with future rates.

If you have a variable rate of any more than prime +.75 or a fixed rate of 4.25% or more, we should explore the merits of refinancing to a lower rate.

Bank prime is at 3.00%

The next meeting of the Bank of Canada is on April 17th, 2012

P.S. If you, your family, or co-workers require guidance on current market trends, please call us, we are always available to help.

...Bill Nugent

Summary of Current Interest Rates

The 10-year mortgage: Is it the right time to go long?

Roma Luciw Globe and Mail Blog
Posted on Monday, March 26, 2012 6:29AM EDT

When our mortgage came up for renewal about a year ago, my husband and I did what many couples do and debated whether to go variable or fixed. What we never seriously considered was locking in to a fixed rate for a decade - that option wasn't even on the table.

What a difference a year makes.

A surge of interest in the 10-year mortgage has dramatically altered the home-owner mortgage debate, which has traditionally been a choice between two five-year products - the fixed and variable, says mortgage broker Vince Gaetano of Monster Mortgage. "The reality is that consumers are now smarter and have more foresight. There is considerable understanding that we are at the bottom of the rate cycle."

He says inquiries about the 10-year fixed mortgage rate picked up in January, when it first dipped below 4 per cent.

Click here to read full article

Historical Interest Rate Graphs

Below is a new addition ... the link will take you to the new rate graph interest rate graph