20 December 2007
Mortgage Rates Update
Posted by Ryan Coffey under: Mortgage rate updates .
Our best fixed term 5 year closed is 5.89% with the possibility of sharpening the pencil to 5.79% if I can catch a spread in the close with the bond market.
As for prime, some economists are calling for another ¼ point drop. I have included an excerpt here from a CIBC Senior Economist.
In Canada, the closely watched Prime-BA spread is now at around 140 basis points — still 15-20 basis points
too low. Judging from the language of the Bank of Canada regarding the risk associated with the current
global credit crunch, along with the likelihood that the economy will slow in the coming six months, it is likely
that the Bank will cut rates again, probably by 25 basis points in early 2008.
Benjamin Tal
Senior Economist
Have a great week on the countdown to Christmas.
Michael
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Michael Ledingham - Licensed Mortgage Broker