Thursday, April 15, 2010
Last Of The Low Mortgage Rates?
We are seeing the last fixed rate move up today above 4.00%. There is talk this is the last of the low rates, not true. This could be the end of emergency rates, not low historic rates. The interest rates on fixed mortgages are controlled by the bond market which has many different factors that control the ups and downs of fixed rate mortgages. The overall theme out there is that the US(Canada's #1 trading partner ) Is going to keep there emergency low rates for quite some time. The head of the central bank in the US stated just the other day that he will be keeping rates low for the see able future. The bottom line is that the US needs to improve employment and production before we will start to see rate go back to normal levels. As with anything, this can all change at any time, hence why we do not future predict.