Mortgage Rates Forecast + MORE Jul 25th

First Calgary Financial 7 year Closed mortgage rate was changed on July 24, 2013

A new poll for BMO suggests some 83% of Canadians have some form of debt (including mortgages), up from 74% from at the same time last year. Average monthly payments meanwhile are down from $1,138 in 2012 to $986. “With Canadian household debt levels remaining at dangerously high levels, we have to wonder why so many Canadians are making lower monthly debt re-payments.  When interest rates are low, as they currently are, Canadians need to do more than just make the minimum payment each month.  Consumers need to take advantage of our current economic climate and put more effort towards retiring their debt,” said Consolidated Credit’s Jeffrey Schwartz in a release Wednesday.

Meanwhile, a poll for TD Canada Trust has found that 40% of recent post-graduate students find it difficult to make minimum repayments on student loans in the first two years after graduating. As a result, many admit to postponing a number of life milestones, including buying a first home (40%), starting a family (36%), getting married (23%) and even moving out of their family home (18%), until student debts are repaid…

Scale is power in mortgage brokering, and that reality has prompted another buyout. Mortgage Architects (MA) announced today that it has purchased Argentum Mortgage and Finance Corp. for an undisclosed…

Mortgage Rates update – the bonds have come down, but not enough?
The Canadian mortgage bond rate has shot up in the past month and is now – thankfully – starting to decrease again …… this is great news for mortgage rates.

As you can see above, we had a massive climb in the bond yields from 1.15% in the middle of May up to a high of 1.7% in the middle of June.  This .55% increase in the bonds was also mirror by an increase in the mortgage rates from 2.89% to 3.49%, an increase of .6%.  Since the beginning of July we have seen the bond rates decrease from a high of 1.7% down to the current level of 1.5%, this downward trend has not yet been reflected in the average five year mortgage rate with lenders still offering rates in the 3.39% and 3.49% range.
If the current downward trend continues or even maintains itself, it is very possible that mortgage rates will be decreasing in the near future.  My current advice for clients is to contact us to obtain the best current pre-approved rate or approval rate and then allow us to monitor the future rate drops for them…

Filed under: Real Estate, Your Home

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They had great credit, a pre-approved mortgage and a baby on the way. But when Ian and Cindy Sagabaen began house hunting in the San Francisco Bay Area, a notorious seller’s market, they were outbid at every turn — until they tried something different.

They wanted to upgrade their single bedroom rental for a three-bedroom, single story home with a bigger kitchen for Cindy and room for an office for Ian. The trouble was that not long after the Sagabaens would visit a place they liked — sometimes just a day later — they were locked out by a stream of applicants who came first, or by people who paid outright in cash. The Bay Area ranks among the top three seller’s markets in the country, according to Realtor…