Market and Mortgage News - Week of Oct.10th, 2011 - Edmonton & Calgary


First Foundation’s Best Rates To Open the Week:

Term Rates
1 Year 2.89%
2 Year 2.49%
3 Year 2.89%
4 Year 2.99%
5 Year 3.29%
7 Year 4.49%
10 Year 4.79%

ARM / Variable 2.60%
Line of Credit 3.50%

Prime 3.00%
Qualifying Rate 5.19%

Market News

The Toronto Stock Exchange opened higher by 155.02 points to 12,030.58 Wednesday on optimism that the European Union has a new plan to attack their debt crisis, including a more definitive plan to support the the banking system in the case that a member defaults.

Better than expected US employment reports also fueled the positive momentum on the market, hinting that the US may not have to go into a double dip recession after all. A strong Canadian jobs report for September also bolstered the market.

What Does This Mean For You?

After weeks and weeks of struggle, the global economy is actually in better shape than anticipated at the moment thanks the headway being made by the EU and positive employment reports in the Western world.

Employment reports are key when determining where mortgage rates are headed because they indicate if there will be a rise in the cost of labour. Because the cost of labour plays such a large part in the economy, any rise in costs cause overall price inflation and therefore higher mortgage rates. We’ve definitely seen this already this week as you’ll see below.

Mortgage News

Due to the positive sentiments on the stock market, rates in the bond market ended last week considerably higher, rising about 15 basis points over the week. This caused some of the Big Five lenders to try to influence the market upward by raising their mortgage rates as much as ten basis points in some cases.

What Does This Mean For You?

Not all of the smaller lenders have followed the example of the Big Five lenders but this could change soon. Some of our lenders have given indication that their will be some upward movement this week so if you’re interested in our 5 year fixed rate, contact one of our licensed mortgage brokerd today to lock one in with a pre-approval.

Also – the variable rate discounts seem to be going the way of the dodo bird as several of Canada’s major lenders eliminated them altogether last week. In fact, some lenders are now flogging prime with an INCREASE, instead!

First Foundation is still offering Prime – .40% at the time of posting but be sure to give us a call if the variable rate was your intention as any discount on prime could be taken off the table entirely this week.

As the company’s first employee, Jennifer has been a Licensed Mortgage Associate since 2004, but her current role is not focused on mortgages. She is the resident blog writer and…

Learn more about Jennifer Rochford