Monday, April 11, 2011
Are Mortgage Rates Going Up?
This is the question thast is geting asked the most right now. The answer is yes and they will come back down. That is what prime rate and fixed rate mortgages do. There is no straight line up or a strasight line down. The facts are what we need to look at. Prime rate has aveged 4.50% for 2000-2010. That is a generation world wide that has had low interest rates. We have a candian dollar at 1.04 and oil at 118 and climbing. This makes the bank of Canada choices a lot less easy. The bottom line is they will raise rates and then they will play the up/down game within a certain% for the next few years till somehting else happens. Something else always seems to happen in the world.