Bank Lowers Prime Rate Again!

Posted by Richard Moxley on March 3, 2009 · 1 Comment

Current Mortgage Rates

Another Half a Point Drop - March 3, 2009

Here is the News straight from the source:

OTTAWA - The Bank of Canada today announced that it is lowering its target overnight rate by one-half of a percentage point to 1/2 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 3/4 per cent.

I won’t go into why the interest rate is lowering because just can read previous posts I’ve written. I hate repeating myself – although I like when the rates are low! Some see the drop in current Mortgage rates as depressing and don’t look at it as an opportunity. For them I insert text from an article written by Greg Quinn, at Bloomberg.com. This is what he reports on Feb 20^th 2009 about what seems to be the light at the end of the tunnel. “The Canadian government bought C$2.34 billion ($1.86 billion) of mortgages from banks, less than the C$7 billion it offered to buy, as part of a program to purchase as much as C$125 billion of the securities and encourage new bank lending.”

Top Economists are noticing that the major banks are not relying on the government as much, indicating that things are slowly turning around. In the mean time the people that are already in variable rate mortgage should be seeing another .5% drop on their already very low current mortgage rates. Does this mean that fixed current mortgage rates are going to drop? It is not a direct relationship but it will put pressure on the banks to try and get their clients incentives to lock into a fixed mortgage.

The next scheduled date for announcing the overnight rate target is April 21, 2009.

Filed under Prime rate changes · Tagged with Alberta Mortgage Rates, Calgary Mortgage Broker, Current Mortgage Rates

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Bank Lowers Prime Rate Again!

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