National Mortgage Rates
First a look at the relationship between Bank Prime rates and Mortgage Rates.
Note the spread between the banks prime rate and the various fixed term rates. Variable rate mortgages are based on this prime rate and over the last ten years if you had chosen the variable rate mortgage you would in most cases have saved yourself a tidy sum of money in lower interest rates. It must be noted that there is some risk to variable rate mortgages as the rates may rise significantly over a period of time. The advantage of a fixed rate mortgage is you know how much your payments will be regardless of whether mortgage rates rise or fall.
If you click on the image below it will take you to CanEquity's interactive version of the chart.
As you can see the trend to lower rates has leveled off and if you follow the latest news from the banks we just might see it starting to edge upward.
"After a flurry of competition in the Canadian mortgage market over the past month, the undercutting between major banks appears to have subsided, says a top banking executive." Read the full story from the Globe and Mail.
Mortgage rates are still at the lowest they have been in over 35 years
The Real Estate Market Is Local
and sometimes hyper-Local
While Charts and Graphs can give you an indication of market trends they should not be used to determine value trends in relation to a particular home or vicinity. The best way to determine the Value of Your Home is a Comparative Market Analysis. To discuss today's local Uxbridge Real Estate Market Conditions, the current value of your home or the marketing of your Home please give me a Call or Text me
Active Rain Survey Results
The InfoGraphic on the right is the result of a study by the largest real estate social network, Active Rain, who conducted a survey of 1,835 real estate agents and real estate brokers in the US and Canada to understand if the real estate market and economy are poised for recovery in 2012, both nationwide and in local markets.
"The study showed that unlike the United States, Canadian real estate agents are fairly optimistic about 2012. the Canadian real estate agents who took part in the survey believe that all core metrics of the Canadian real estate market and economy will be increasing in 2012. Real estate values, real estate transactions, new construction starts, and the local economy are project to increase slightly in 2012. Canada continues to have a strong banking system, a strong dollar, and low unemployment. Interest rates are low, spurring international investment in Canada.. Canadian confidence continues to be high. Job growth is being driven by the energy industry in Canada."
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