Oct 10, 2014
As we head into fall and harvest season, we always tend to look back at the summer to prepare for the winter and year end ahead....
With many meteorologist calling for this next season to be another long and bad winter, no better time than now to make sure you are fully prepared for not only the weather, but what could happen to the interest rates.
This is now the third year that the banks have used the 2.99% interest rate in the spring time to stimulate the market. And with the last three spring and summer markets being as active as they were, I would say it is safe to say that the Canadians are taking advantage of these low rates and the cheap cost of money.
Many feel the rates are not going anywhere for a while, but let me caution you there… last year at this time The 5 yr rate already increased 80 bps For example a five year fixed discounted in September 2013 was 3.79%, with the bonds pushing the average 5 year to being 3.99%. After a long cold winter, our spring market came suddenly, and literally on Easter weekend, within the same two weeks thatt the banks again drop the rates down to a 2.99%, introducing us to our third and present summer end.
The last few weeks, we have seen an increase in the five-year bond, the next question is how cold will this winter really be, and where will the interest rates go, will they increase as the temperatures drop?... And more importantly, where will the rate be in the spring market of 2015?
Make sure to follow, and keep in touch with Mortgage Teacher, as we keep up to date and will have these answers for you.