Mortgage & Market News - Week of Jan.23, 2012, Edmonton and Calgary

First Foundation’s Best Rates to Open the Week:

Term Rates
1 Year 2.89%
2 Year 2.89%
3 Year 2.89%
4 Year 2.99%
5 Year 3.15%
7 Year 3.99%
10 Year 3.89%

ARM / Variable 2.90%
Line of Credit 3.50%

Prime Rate 3.00%
Qualifying Rate 5.29%


Market News

Energy and financial issues were pushing the TSX to its fourth straight positive finish on Monday, as natural gas prices rose and European finance ministers gathered in Brussels to discuss Greek debt just prior to the European Union summit next week.

At the closing on Monday, the S&P/TSX composite index was ahead by 124.60 points, or 1.01 per cent, to 12,521.70.

The Canadian dollar rose 55 basis points to 99.25 cents US in late-afternoon trading.

Mortgage News

The Bank of Canada’s decision to maintaint the overnight rate target at 1.00% calmed market worries and saw investors moving back into equities. This caused bond yields to perked up by 13 basis points in the last week and fixed rates are responding in kind. Many of the lenders who had dropped their five year fixed rates to 3.15% are increasing them again by 5 basis point as of Tuesday night, pushing the rate back up to the 3.25% mark.

Contact one of our licenced mortgage brokers immediatly if you are interested in this impressive rate as all of our lenders may also follow suit by the end of this week.