First Foundation’s Best Rates to Open the Week:
1 Year 2.64%
2 Year 2.99%
3 Year 3.39%
4 Year 3.39%
5 Year 3.39%
7 Year 4.69%
10 Year 4.99%
ARM / Variable 2.20%
Line of Credit 3.50%
Prime Rate 3.00%
Qualifying Rate 5.39%
The Toronto stock market advanced strongly on Tuesday, as commodities firmed, supported by better than expected manufacturing data from China. A strong earnings report from Bank of Montreal also shored up market sentiment even against less rosy data, including U.S. new home sales and Richmond Fed numbers that came in below expectations.
The S&P/TSX Composite Index gained 269.97 points or 2.24 percent to 12,338.33.
Why should this matter to you? Investors seem to be clinging to news that shows positive growth in the economy and shrugging off the bad news in order to prop the market up a bit. Will this effect mortgage rates in the long run? Not likely – bond yields are still very low yet investors are snapping them up demonstrating the sentiment that very little economic growth is expected in the near future. Watch for fixed rates to continue to move downward.
Did you know that if mortgage rates drop, our lenders will give you the lowest rate published at the time of closing? Should something is extraordinary happen in the market that drives interest rates upward, a mortgage pre-approval will protect you for 90 -120 days, but you are not stuck with your rate hold should mortgage rates take a cut.
Also, check out our three, four and five year fixed rates all at 3.39% and our two year coming in just under 3.00% at 2.99%!
Which to choose? Great question! Choosing the right mortgage term is as just as important as obtaining a great rate so be sure to consult with one of our experienced mortgage brokers about the right mortgage strategy for your particular situation.