Where Are Mortgage Rates Going?

After being in the mortgage business for 15 years, this question never gets boring! The reason, mortgage rates are always changing for various reason's. There is no science or magic graph to predict which direction mortgage rates will be heading. The safe est bet is they go up and they go down. Watch for trends in the financial markets to best gauge how mortgage rates are going to move. The trend right now? Lower mortgage rates are on the way. We have two prediction's of prime rate to be lower by 1.25% for 2008. Watch the markets to see if this will be true.

Oil and Gold On The Rise

We are seeing gold and oil rise to new historic levels. This is making alot people concerned about interest rates. Why? If history is any indicator, when these two factors rise, this usually means Canadian mortgage rates will rise as well. This could spell the return of inflation. On the flip side the economy in the US has unemployment rising which is calling for lower prime rate down south. These are some very interesting times in the Canadian mortgage market.

Canadian Mortgage Rates

We are seeing the credit crunch take a even worse turn for the consumer. I have talked a lot on my blog about the spread between the bond rate and the best discounted mortgage rate that is available to consumers. Today, the spread is one of the highest I have seen since covering this. The spread is currently over 2.00% in favor of the banks. This means Canadian mortgage rates are going to remain higher in the short term for consumers.