Best Mortgage Rates for August 16th 2012
1 Yr – 2.49% - 3 Yr – 2.64% - 5 Yr – 2.89% - VRM – 2.65%
Wow! This week has proved even quieter than the last. No major economic news was announced, but we do have inflation numbers coming on Friday. With Mark Carney already threatening the need to remove financial stimulus, he wants the market to believe that if this comes in higher than expected that we could see rate increases happen earlier than most are projecting.
I don’t think most economists are really giving this idea any serious attention as the economic fundamentals are too stacked against the option to increase rates. Mark Carney has been crying wolf for too long and there are no obvious reasons to increase rates. The economy isn’t at full capacity, we still have high unemployment, the dollar is playing with parity and they aren’t any further ahead in Europe. Until these economic headwinds start changing direction, there really is no room for the Bank of Canada to make any rate changes. Hence the mortgage announcement we got on June 21st. I wouldn’t bet variable rates, but I think we should be here for a while still.
That being said, bond yields are still up, and we have some increases in rates, but there are still some great rates to be had out there:
Lee Welbanks is a Mortgage Broker with Welbanks Financial Group, Lee will be posting these informative “Market Minutes” each week for you to enjoy. Heard about our awesome new home search tool? We’ve opened up the MLS just for you. Make sure you login to our custom Spring Realty Homefinder Tool and give it a spin! Find us on Facebook and Twitter too!