Who is saying What this Week about Mortgage Rates - June 11th 2009
Tanya Cederholm from Dominion Lending Centres Okanagan sends this information along today:
Well here we go another rate hike on the way…Rate Increases again today… get your or your clients to submit their applications NOW!!!
Hi Clients, Friends and Realtors this is not a message of doom and gloom but simply a real look at what will be happening over the next few months. For those that were thinking of refinancing or purchasing a home or investment property rates will not be any lower than they are now and will be going up quickly and in my opinion much higher than we have seen for the last few years.
In my opinion we are truly looking at high 5 or low 6% rates with in the next 4-6 months. ANY CLIENTS CONSIDERING A PURCHASE NEED TO GET THEIR APPLICATIONS IN FOR RATE HOLDS. We are only going up from here.
…Why I believe we are in for a couple spikes…
Last week, mortgage rates went up 20 bps and this week another 40 bs, that’s 60 bps in total. The sub -- 4% 5 year Mortgage Rates in Canada are now GONE... GONE … Long term (10 year treasury bonds) bonds in the US are near 4%, up 2% from 6 months ago… the longer term (30 year) bonds are getting very close to the magic 5%, that the cash guys want… there is also speculation out of the States that these same 30 year US treasury bond could go to 7% or 8%.... This all effects the same Canadian Bond Yields which are up similarly...
I don't want this to sound alarming… but we all need to be aware of the impact of the pushes in the bond yields… it is a sign that the 'Cash Guys' want more… thus this will lessen spreads (Mortgage Rates vs Bond Rates) and push the lenders (like us) to move rates…
Like I have said before…
I would suggest that you contact your clients --- or if you are one of the ones 'sittin on the fence' because you believe one or both of the following:
- " I think rates are going to go lower and I don't want to pay more than I have too… "
- "… house prices are coming down, I want to wait and get best deal…"
As you all know these are the best of rates in the last 50 YEARS or so… this is the time to get you or your clients the best rates… lock the rate… the bottom is rising. I want to ensure that you are able to assist yourself or your clients in getting the best deal… and NOW is the time
Please let your clients know that a purchase they may be able to make now might be out of reach in the next couple of months urge them to get a pre-approval or at least a rate hold.
Any questions drop me a line.
Tanya Cederholm
http://www.tanyacederholm.ca/ or click here to see Tanya's Latest Rate Information
and Pam Owen sent this yesterday:
We have official word that the fixed rates are going up once more, effective tomorrow--- the 3, 4, and 5 year rates are up by another .40%. Please make sure your clients have their rates saved and pre-approvals completed!
On a good note, the variable closed term is now down to prime plus .6%==== floating rate of 2.85%.
Still low rates when you look back historically, but it looks like the economy is starting to change….. Good news comes in mixed messages!
Pam:)
Pamela Owen | RBC Mortgage Specialist | RBC Royal Bank | T. 250-260-0008 | F. 250-260-4005 | pamela.owen@rbc.com | pamelaowen.com
With warmest regards.
See you online,
Brell ~ Brenda Ellis REALTOR with Okanagan Heat @ Century 21 Executives Realty Ltd 
