Market and Mortgage News - Week of Sep.12, 2011 - Edmonton & Calgary


First Foundation’s Best Rates to Open the Week:

Term Rates
1 Year 2.64%
2 Year 2.99%
3 Year 2.89%
4 Year 2.99%
5 Year 3.39%
7 Year 4.69%
10 Year 4.89%

ARM / Variable 2.40%
Line of Credit 3.50%

Prime 3.00%
Qualifying Rate 5.39%

Market News

Toronto’s main stock index pushed higher on Tuesday, snapping a three day losing streak, as investors picked up beaten down shares of banks and energy companies. However pervasive worries over euro zone debt limited gains have experts saying that the rollercoaster of volatility will continue until there some assurances that Greece’s economic issues will be dealt with.

In addition, Canada’s employment report for August was released on Friday and it showed a rise in the unemployment rate and a net decline in the total number of jobs. The dismal showing was worse than the market had expected, much like the disappointing employment numbers released by the US, also last week.

The Toronto Stock Exchange’s S&P/TSX composite index closed up 56.65 points, or 0.47 percent, at 12,205.48. Seven of the 10 main sectors were higher.

What Does This Mean To You?

Overall poor economic conditions should continue to keep mortgage rates at historical lows and may even cause a further reductions to fixed rate mortgages.

Mortgage News

Of the five Canadian regions, the Prairies was the only region to show any positive gain in housing starts, rising 9.4% from 31,800 in July to 34,800 in August.

While still down about 18% from the same eight-month period last year, Calgary totaled 1,237 units in August, up 44.2% from the 858 units in August 2010. Winnipeg saw the most housing starts in any August since 1989, with 231, up 7.9% from the 214 in August 2010.

In Edmonton, the highlight was the multi-family market, where the 311 starts in August were up 82% from the 171 in August 2010. For the seasonally adjusted annual rate, overall starts were up 16.7% to reach 850 from the 650 in July.

But outside of the Prairies, all other parts of Canada saw declines in urban starts. Nationally, the seasonally adjusted annual rate of 184,700 homes started in August was down 9.7% from 204,500 starts in July.

What Does This Mean To You?

Rates will stay low for the near future but Alberta’s boom is gaining momentum, causing more action in residential markets than anywhere else in the country, save Winnipeg, Manitoba. A boom could drive house prices up next year so if you are thinking of getting into the market, you might want to consider doing so before the typical spring rush in 2012.

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…

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