Monday Market and Mortgage News - December 7th, 2010 - Edmonton & Calgary

First Foundation Best Rates to Open the Week:

Term Rates

1 Year 2.45%
2 Year 3.20%
3 Year 3.34%
4 Year 3.49%
5 Year 3.59%
7 Year 4.75%
10 Year 5.14%

ARM / Variable 2.20%
Line of Credit 3.50%

Prime Rate 3.00%
Qualifying Rate 5.19%

Market News

The S&P/TSX composite index fell 364 points to end the day at 13,040— a drop of 2.7 per cent. It was the biggest one-day percentage drop in almost three years. At its worst point, the index was down 457 points. Every sector was in negative territory, with resource stocks leading the charge down.

As dramatic as that drop is, the main Toronto index is still above where it was just eight weeks ago at the close of 2006. Leading up to Tuesday, the Toronto market had set seven record highs in nine trading sessions. Toronto’s benchmark index has doubled since October 2002 as it benefited from a steady rise in commodity prices.

The losses followed an almost nine per cent plunge overnight in Chinese stocks, their biggest drop in a decade. Investors are worried that a slowdown in China’s booming economy could crimp demand for the West’s goods — especially its commodities.

Mortgage News

The Bank of Canada makes its interest rate announcement on Tuesday, Dec. 7th. Economists expect the benchmark rate to remain unchanged at 1 per cent, given market conditions at home and abroad. Read more here.

This is terrific news for anybody considering buying a home before the year is out or even the first half of 2011 as the current historically low interest rates should hold. Talk to one of our mortgage brokers about holding a rate for you for 3 months or more while you shop for the perfect place!