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Note: if this page does not display correctly, click on First Rate - June 2004 edition(this page is optimized for MS Outlook, Yahoo mail and Hotmail)June 2004
Dear homeowner,
I'm pleased to provide you with First Rate, an e-newsletter designed to help you keep track of interest rate movements. As your mortgage broker, friend or associate, I feel it is important to keep you informed about trends in interest rates.
This newsletter is designed to be brief, to the point and content rich. As a home owner, real estate professional or investor, being aware of interest trends will allow you to make decisions that can save you money.
In this issue:
- Interest rate trends
- CMHC market outlook
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- Interest Rate Trends
- For the past 5 weeks, interest rates slowly inched up during the past 5 weeks due to expectations of higher inflation.
Prime @ 3.75%Term
Apr 16
Apr 23
Apr 30
May 7
May 14
May 21
May 28
3 year
3.90%
3.90%
4.20%
4.20%
4.45%
4.45%
4.45%
5 year
4.65%
4.90%
4.90%
4.90%
5.05%
5.10%
5.20%
10 year
5.54%
5.75%
5.75%
5.75%
5.85%
5.90%
6.00%
Table shows the best residential mortgage rates for 3, 5 and 10 yr closed fixed rate mortgagesClick to view graphs- In the News:
- 1) With elections coming up in both the US and Canada, Jerry Rubin, Chief Economist for CIBC World Markets, does not expect interest rates to rise anytime soon. Read his April 12 article entitled "Ahead of the Curve"
- 2) The Bank of Canada expects the economy to grow by 2.75% in 2004 and 3.75% in 2005. Consumer price index is expected to remain at 1.5% . Read this April 15 artlcle here
- Links & Resources:
- 1) Royal Bank - Financial Market Weekly (adobe pdf required)
- 2) Bank of Canada - Bond Yields
- 3) Bank of Canada Business outlook survey - Click here for full article
CMHC Market Outlook
On May 27,2004, I attended a presentation for mortgage brokers by Cameron Miur, CMHC's Senior Market Analyst for BC. I summarize the major points of Mr. Miur's presentation:
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Expect the 5 year residential mortgage rate to rise to 7.75% by 2007. This is a reflection of the overall growth in the economy.
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BC will continue to see growth in international and inter-provincial migration
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As with most of the country, most immigrants move to urban areas where jobs are located
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BC experienced a growth in jobs at 2.2% compared with the national average of 1.6%; He also noted the growth in full-time job which is a reflection of business optimism
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Vancouver prices are still less than early 1990 levels if inflation is taken into account
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Price growth in the half of 2004 will be higher than during the 2nd half of the year. CMHC is expecting another banner year for real estate sales
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Is the bubble going to burst? Unlikely. Inventories are very low. Even with new units coming into the market, the market can easily absorb any new inventory
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Olympics will inject $10.5 Billion into the economy generating 150,000 employment person years. While that amount may seem like a large number, it is not very significant if compared to BC's total economic size. The major positive spin-off is the optimism it has generated which has resulted in increased consumer spending, a major driver of the economy.
Think about
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With long-term rate on the rise, consider locking-in for a long-term mortgage. If you haven't had your mortgage reviewed recently by a mortgage professional, you need to have that done as soon as possible.
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Please consider the information provided in this newsletter as general information. Before you do anything consult a professional.
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