Mortgage Rate Update | October 21 2013

Lately there hasn't been as much movement in the Canadian mortgage rates market. Some view that as a positive thing, as stabilty brings certainty and allows people to make plans. Truthfully we often have mixed feelings about rate increases and decreases in the mortgage broker field.

1. Mortgage rate increases hurt our clients in the pocketbook and make it harder to qualify, however, it often gets buyers 'off the fence' if they know about them in advance.
2. Mortgage rate decreases save our clients money, at least those who act quicly on them, but can put pressure on real estate prices to go up to a point that many can't afford.

As most of us have heard over the years, maybe everything is better "in moderation". This latest interest rate decrease is certainly a moderate one, with a five-year fixed rate mortgage going from 3.59% to 3.49%. It's not a huge decrease but it is a welcome one and something you should consider strongly if you're planning to be in a home - any home - for the next five years.

The five year fixed interest rate has gone from 3.59% to 3.49%. Bond yields are fairly flat at 1.83%.

If you'd like, you can stay on top of any interest rate changes in the Canadian market by subscribing to First Foundation's interest rate RSS feed.