Alberta’s Best Mortgage Rate - 3.59 on a 5 year fixed 3.49 on a 3 year fixed
Current Mortgage rates 3.59% 5 year fixed
We saw a roller coaster ride on the fixed mortgage rates for 2009, 2010 and now it looks like 2011 will be no different. In the 2009 summer Alberta had the lowest mortgage rate of 3.5% for a 5 year fixed. Then a month later it had shot up to 4.5%. Then because of the bond rate Alberta again had the lowest mortgage rates at 3.69%. Current mortgage rates again started to increase for October and the first part of November of 2009. Most of the branch mortgage specialists of the Major Banks were sitting at close to 4.49% on a 5 year fixed. At the end of 2009 the bond market softened up a bit, and rates declined slightly. The best mortgage rate for Alberta or anywhere was 3.89% on a 5 year fixed. Right around December of 2009 I had all these reports that the banks were going to jump the rates up. Then the banks, true to their nature the opposite happened in the beginning of February 2010. Rates dropped. Now after the banks raising rates in January of 2011, now they are back down to the 3.5% range.
The lowest fixed rates we have ever seen is 3.49% on a five year fixed, we are know currently at a 3.59% on a 5 year fixed and there are only a few lenders offering it. One great thing about this mortgage is it can be used purchases, and Mortgage refinances but it can only be held for 30 days from the time I submit the application.
The bank of Canada has been saying for the last year that rates are going up and they have but they have also come right back down. So it is left to us to guess as no one seems to have a clue what is going on. Generally when the economy isn’t doing so hot they keep the rates low. Our economy and especially the housing market are definitely showing all the signs of the recession being over. The problem is it isn’t that simple. You have to consider the increase in our dollar, increase in Jobs, problems with our Southern Neighbors and pretty much every other economic situation in the world. Imports, Exports, an increase of printing money and whole bunch or other factors and the rates are a result of all of that.
Everyone seems to have their guesses about what this will happen to the fixed and variable but as consumer confidence continues to grow I feel that we will continue to see rates low for the most part of 2011 and then look for the roller-coaster ride of rates trending upwards in 2012 until we get back to normal rates of 5 – 6%. Because of the uncertainty, many will still be working hard to get Alberta’s best mortgage rate locked in.
Whatever you decide to do make sure that you are picking they type of rate that makes sense for you unless you have a crystal ball of course.
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RBC - Economic Report on Mortgage rates!
Excerpts from RBC’s Economic Updates
U . S . H I G H L I G H T S
The U.S. economy grew at a 3.5% annualized pace in the third quarter backed by a rebound in consumer spending and surging residential investment, which ended 14 quarters of decline.
Early reports on fourth-quarter activity point to another increase in output, with the ISM manufacturing
index driving solidly into expansionary territory in October and housing indicators pointing to firming sales against a shrinking inventory overhang. However, emerging from the deepest recession since the Great Depression, the U.S. economy remains fraught with uncertainty about the health of the financial system and pockets of weakness outside of housing.
Our forecast is that the first rate increase will come late next year with the funds target ending 2010 at 75 basis points and then rising to 2.75% by yearend 2011.
G L O B A L H I G H L I G H T S
The tide has turned for the global economy with U.S. real GDP posting a strongerthan-expected increase in the third quarter, the Reserve Bank of Australia (RBA) citing Australia’s good economic performance as a reason for raising the policy rate and China recording a breathtaking 8.9% increase in third-quarter output.
Canada, the United Kingdom and the Eurozone have yet to produce clear indications that their economies are out of recession, but conditions are improving and we expect reports of positive growth soon. Central banks are cautious, however, with only the RBA of the major central banks we cover starting to unwind monetary policy stimulus. Given the deep hole in economic activity, it is likely to be a long time before other banks will be in a position to follow the RBA’s lead, with hikes expected to come in the latter part of 2010 and continuing in 2011.
C A N A D A ‘ S E C O N O M I C P I C T U R E
Unlike the United States where the data point to the end of recession, Canada’s numbers are less clear-cut. The third quarter showed stronger-than-expected gains in employment and housing, but both July and August’s GDP reports disappointed. Our estimate that the economy expanded in September will skate GDP
back into positive territory, but the risks are that the rebound will fall short of the consensus forecast for a 2% annualized gain. Our reckoning is that on an expenditure basis,real GDP growth was 0.5% to 1% at an annual rate in the quarter.
The rebound in U.S. growth, low rates combined with government spending augur well for an improving trend to emerge in quarterly growth rates in the latter
C A N A D A H I G H L I G H T S
Unlike the United States where the data point to the end of recession, Canada’s numbers are less clear-cut.
The economy shrank by 0.1% in August after posting no growth in July. We think that the economy will
skate back into positive territory in September, but the risks are that the rebound will fall short of the consensus forecast for a 2% annualized gain.
Our reckoning is that on an expenditure basis, real GDP growth was 0.5% to 1% at an annual rate in the third quarter. For the Bank of Canada, the road to the normalization of interest rates will be long. Our forecast is that the Bank will boost the overnight rate to 1.25% by the end of 2010 with further increases in 2011, yielding a policy rate of 3.5% by year-end.
L O O K A H E A D T O 2 0 1 0 A N D 2 0 1 1
While near-term indicators signal an end to the global recession, markets remain worried about the durability of the upturn as fiscal and monetary policy support subsides. In Canada, the recovery started with a whimper rather than a bang, but we expect the momentum to build, spurred by a strengthening U.S. economy, low interest rates and a steady influx of government spending. Consumer confidence increased for seven months and, although the index edged down in October, it remained near the highest level since early 2008. With asset values recouping part of their losses and interest rates extraordinarily low, we expect consumer spending will recover in 2010, helped early in the year by government programs like the Renovation Tax Credit. We forecast that the economy will grow by 2.6% in 2010 with the unemployment rate peaking early in the year and then drifting lower.
I N T E R E S T R A T E F O R E C A S T S
|
Quarter |
Q4-09 |
Q1-10 |
Q2-10 |
Q3-10 |
Q4-10 |
Q1-11 |
Q2-11 |
|
Overnight Lending Rate |
.25 |
.25 |
.25 |
.75 |
1.25 |
2.75 |
3.50 |
|
5 Yr GoC bonds |
2.75 |
2.80 |
2.85 |
3.10 |
3.40 |
3.70 |
4.05 |
Calgary Real-estate update
New stats on your Calgary mortgages and Calgary Real-estate
Calgary Real-estate update
Great news Calgary!! For the sixth consecutive month, MLS residential sales in Calgary have increased from year-ago levels in both the single-family home and condominium markets. This is just one indicator that the market seems to be rebounding.
The strength of the market can also be seen in average house prices. Today, single-family homes, for example, are selling in the neighbourhood of $50,000 more than they were in January.
According to many local Calgary real-estate websites, there were 1,015 single-family home sales for an average price of $465,125 and 460 condo sales for an average of $284,511, month-to-date until Oct. 25. In October 2008, the Calgary Real Estate Board reported 820 single-family home sales with an average price of $449,100 and 399 condo sales for an average of $289,148. As you can tell the average house price has increased but due to more condo’s on the market the average condo sale has decreased slightly.
Here are some of the reasons why people seem to still be buying and Calgary mortgages continue to be in high demand:
- Record Low Calgary Mortgage Rates
- High employment rate
- Low Calgary house prices
- and I feel the most important of all is consumer confidence
There are still those that have fallen on hard times but it seems with the above mentioned indicators the majority of Albertan’s, especially Calgarians seem to be doing just fine.
