First Foundation Best Rates to Open the Week:
1 Year 2.89%
2 Year 3.05%
3 Year 3.19%
4 Year 3.29%
5 Year 3.15%
7 Year 3.99%
10 Year 3.89%
ARM / Variable 2.85%
Line of Credit 3.50%
Prime Rate 3.00%
Qualifying Rate 5.34%
The TSX posted a small advance, Tuesday after a roller coaster Monday session and ahead of a conference call between finance ministers and central bank governors from the G7 countries to discuss the worsening European debt crisis which is undermining the banking sector.
The S&P/TSX composite index climbed 41.14 points to close at 11,376.91.
As was widely expected, the Bank of Canada left it’s key interest rate unchanged at one per cent due to a continued downturn in the world economic climate.
After a year of warnings from the Bank of Canada that a rate hike by the end of this year would be inevitable, bond markets seemed to have shifted from betting on a rate hike to anticipating a possible rate cut.
If the market is right, this is very good news for variable rate mortgage borrowers but at the very least, the shift indicates the current prime rate of 3.00% should hold even longer than originally expected.