Mortgage rates are going back up

[Rerun]

3 weeks ago when I was checking on mortgage rates, the best available rate that I could find for a 5 year closed term, was 3.59%

Anyways, now it appears that the best rate I can find on the internet, for a 5yr closed, is 4.49%

Good thing I locked in at a lower rate 3 weeks ago.

[GrrlGoalie33]

Westcor has a posted of 3.79:

5 Year3.79% 5.45%

http://www.westcormortgage.com/cgi-bin/rates.cgi

[troutman]

I wouldn't lock-in variable mortgages yet.

[albertGQ]

ATB still has their 5-year for the whole month of June for only 3.50%

[albertGQ]

CIBC went from 3.75% to 3.95% to 4.35%

[macker]

Bernanke was wanting to keep the mortgage rates down as long as they could but they are really starting to move beyond his control.... http://finance.yahoo.com/q/ta?s=%5ETYX&t=6m

[Prototype]

Originally Posted by albertGQ

ATB still has their 5-year for the whole month of June for only 3.50%

I'd get in as quick as you can, ie - tomorrow to start the application. After June 16, it goes up to 3.7%, can could very well change after that.

[albertGQ]

Originally Posted by Prototype

I'd get in as quick as you can, ie - tomorrow to start the application. After June 16, it goes up to 3.7%, can could very well change after that.

Yeah, I've gone in and blended my God-awful rate of 5.60% with that 3.50% rate. My blend rate is 4.55%. Not that good currently, but a great historical rate at least.

[photon]

So a good time to lock in long term if you've got variables?

[macker]

Originally Posted by photon

So a good time to lock in long term if you've got variables?

http://www.msnbc.msn.com/id/7148582/ = I think so....

[csnarpy]

Originally Posted by photon

So a good time to lock in long term if you've got variables?

I don't think so at all. Prime hasn't budged and the BOC has kept it's stance that it will not change until June 2010 at the minimum. Unless the world starts "booming" again, and this would have to be a significant boom then I can't see the prime hit above 5% with in the next 3 years.

[Mike Oxlong]

Originally Posted by photon

So a good time to lock in long term if you've got variables?

Depends on the variable rate you have. If it is Prime minus then leave it at a variable. The Prime rate is supposed to stay where it is until June of 2010. You might as well take advantage of rock bottom rates. That's why you took a variable in the first place. How often are you going to get rates at 1.5 ish %.......

If you are in a Prime plus situation I think you should have locked in 2 or 3 weeks ago when you could have got 3.59%. Now you just have to determine where fixed rates are going to be in June 2010 when Prime goes up. If you think they are going to be way higher than the 4.49% they are now then locking in might be a good idea. If you think you can lock in at 4.49% a year from now when prime goes up then ride it out for a year and keep paying approx 3%


My inbox is PACKED today with emails from lenders announcing rate increases. Some have even increased twice in one day. 4.49% for a 5 year seems pretty standard right now. There are a few that are a bit lower though.

I know they were going to go up but WOW this is a bit much.

If anyone is thinking of buying or if your mortgage is renewing in the next 4 months call your mortgage broker NOW and get a rate hold put in place. Hopefully they don't go up any further than this but if they do, cover your ass. You might even be able to sneak a rate hold in with one of the lenders that hasn't increased as much yet.

Feel free to ask me any questions you guys may have.

[macker]

Originally Posted by csnarpy

I don't think so at all. Prime hasn't budged and the BOC has kept it's stance that it will not change until June 2010 at the minimum. Unless the world starts "booming" again, and this would have to be a significant boom then I can't see the prime hit above 5% with in the next 3 years.

When the Fed or BOC lowers the short-term discount rate, this is designed to stimulate consumer spending on short-term credit, which affects credit card rates, some car loans and lines of credit. The short-term discount rate has little affect on long-term mortgage rates. The bond markets are your guide to see where the mortgage rates are going....

[Old Yeller]

My variable rate is currently at 1.85% and if I lock into a 5 year fixed it's 3.9%.

Someone decide this for me because I can't, I'm too indecisive....

[Mike Oxlong]

Originally Posted by Old Yeller

My variable rate is currently at 1.85% and if I lock into a 5 year fixed it's 3.9%.

Someone decide this for me because I can't, I'm too indecisive....

I would call your bank and confirm that with them. I bet after today you can't lock in at 3.9% anymore.

Stay at 1.85%. That rate is golden and you should have it for the next year.

[Mike Oxlong]

Originally Posted by macker

When the Fed or BOC lowers the short-term discount rate, this is designed to stimulate consumer spending on short-term credit, which affects credit card rates, some car loans and lines of credit. The short-term discount rate has little affect on long-term mortgage rates. The bond markets are your guide to see where the mortgage rates are going....

Bond markets affect long term FIXED rates yes. However prime is directly affected by the Bank of Canada overnight rate which is expected to stay low until June of 2010. Variable rates are tied to the prime rate at lenders.

Bond yields have been climbing for a while now. I am surprised it took this long for the lenders to raise rates. Seems like they are making up for lost time as well.

[Old Yeller]

I just got off the phone with them (MCAP) and have the 3.9% locked in for a month while I struggle with the decision.

But the advice helps, I'm going to tell my wife that Calgarypuck thinks we should stay at 1.85% and they're never wrong.

Except about the withdrawal birth control method but other than that...

[TurnedTheCorner]

My mortgage was locked in 4 years ago at 4.5% closed. I've been able to sleep at night. I might switch to variable next time, as the payment isn't quite as much of a burden now and I can handle some volatility if it means getting out of my mortgage faster.

[Sidney Crosby's Hat]

Here's a dilemma, do I go with 3 years at 3.15% or 5 years at 3.50%?

[photon]

Thanks for the input guys, yeah I should have locked some in at 3.5%.