Thursday, August 21, 2014

My Mortgage Rates

Wednesday, August 20, 2014

Home Sales in Canada Rise For the Sixth Straight Month in July

TORONTO — Sales of existing homes in Canada rose in July to their highest level since March 2010, notching their sixth straight monthly increase after a slow winter, the Canadian Real Estate Association (CREA) said on Friday.
CREA, the industry group for real estate agents, said sales were up 0.8% last month from June, surpassing June’s downwardly revised 0.6% increase. Actual sales for July, not seasonally adjusted, were up 7.2% from July 2013.
Canada’s housing market has roared back to life after an especially brutal winter that hurt home-building, sales and prices. The bounce-back has been bolstered by low mortgage rates, which are not expected to rise significantly until 2015.

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Tuesday, August 5, 2014

Five-year mortgages holding firm, but just wait

Five-year fixed mortgage rates tend to roughly track the yields on five-year government of Canada bonds, because those influence the cost of the funds that the banks obtain to lend out. Yields on five-year government of Canada bonds have fallen. They ended last year at 1.95 per cent, and this week were below 1.50 per cent.

“If you went back to the start of the year, there was an absolute consensus that bond yields were going to head higher,” explains Toronto-Dominion Bank chief economist Craig Alexander. “Not dramatically, but there was an absolute consensus that bond yields would be increasing through the course of 2014. So, one of the big surprises this year has been the drop in bond yields.”

Canadian bond yields tend to mirror those in the U.S. because the market views the securities as alternatives to one another.

Click here to read more about the 5 yr term holding firm.