Mortgage & Market News, June 4th, 2012, Edmonton & Calgary


First Foundation Best Rates to Open the Week:

Term Rates
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%

Market News

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.

Mortgage News

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.

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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