MortgageGirl Market Update
There seems to be multiple factors contributing to our current mortgage interest rate market and I would like to briefly detail those for you as simply as I can:
You would think the recent announcement to keep the prime rate the same after a record 2 years might prompt talks of a rate increase however some economists believe we could see a rise in rates by the end of the year. I on the other hand believe we are more likely to see rates start to increase slowly starting mid 2013.
Inflation fell slightly easing pressure on the Bank of Canada to raise interest rates and in addition to that, rising consumer debt levels and the Canadian unemployment rate of 7% are drawing most of the attention to getting more Canadians working and paying off debt rather than rocking the boat by rising mortgage rates.
Adding more fuel to the low rate fire is soft export performance and the obvious concern over what is happening in the U.S. and Europe, mainly their slowing growth. I like to think the mortgage rule changes announced over the past couple of months have acted as an alternative to raising rates and it does appear they are acting as a warning light to slow down and be prepared for the low rates to rise. It is quite apparent that these low rates are not sustainable and they will have to increase in the future.
There will always be a need for mortgage financing and there are always going to be many options available by many different lenders. Having said that, it’s the rules and guidelines that will change so my suggestion is to safeguard yourself from mortgage market fluctuations by keeping personal debt levels to a minimum, establish a savings cash cushion and keep your credit score high with responsible financial habits.
As always, The MortgageGirls are always here to answer any mortgage questions you may have. Contact us via phone at 866-932-8412 or email email@example.com. Stay in the loop by following us on Twitter @MortgageGirlca