Monday Mortgage & Market News - August 30, 2010 - Edmonton and Calgary

First Foundation’s Best Rates to Open the Week:

1 Year – 2.60% 2 Year – 3.04% 3 Year – 2.90% 4 Year – 3.54% 5 Year – 3.64% 7 Year – 4.85% 10 Year – 5.19%

ARM / Variable – 2.05%
Line of Credit – 3.25%

Prime Rate – 2.75%

Qualifying Rate – 5.39% ( down from last weeks rate of 5.39%)

In Toronto, S&P/TSX composite index rose 15.83 points, or 0.1 per cent, to 11,895.55.

Dollar is down .77% to 0.94.33 USD

The US announced gains in their consumer spending numbers but the unemployment rate also went up causing an overall investor nervousness about the current direction of economic recovery. This caused the American stocks to go in the opposite direction of it’s Canadian counterpart, with the US Dow closing down 140.92 points, or 1.4 per cent, at 10,009.73.

In Canada, Tuesday’s release of second-quarter gross domestic product will give us a clearer idea of whether the Bank of Canada will raise interest rates on Sept. 8.

Banks Profit Reporting Continues…

The financial sector on the TSX was up 0.5 per cent despite a mixed bag of earning reports from four out the six major banks. CIBC and National Bank reported earnings that exceed the analyst forecasts but BMO and Royal Bank reported lower than expected earning.

I came across a cute comment by a fellow reader of financial news and views:

“I am sick and tired of the banks showing such low profits. We need to help them make more money. Rack up more debt, increase interest rates, maybe just donate directly to them. They are going to wither and die with only a few Billion dollars in profit each year.”

Tee hee – that’s funny to me. Maybe, if they ask nicely, George Clooney will arrange a concert fundraiser for the Big 5 and Bono can take your donation right over the phone!

Have a great week and be sure to contact one of our Mortgage Brokers learn more about today’s interest rates ( or if you feel like making a donation to a major bank…chortle, chortle, chortle).