Mortgage Tools
Where are Mortgage Rates Headed Today?
It seems that each time we turn on the news, we get conflicting stories about where mortgage rates are headed today. Are they going to increase as the economy recovers? Is there a chance that central banks will keep rates low, given high unemployment rates and a shaky U.S. housing market?
If you currently own a home or plan to enter the housing market for the first time, these questions are of vital importance. If you do not foresee an interest rate hike in the near future, you may choose to take advantage of rock bottom rates on variable mortgages. If, however, you believe that interest rates are headed up, you may choose to forgo the possible short-term savings a variable mortgage offers and instead lock in for a five-year term.
Which is the better strategy? A consultation with a CMI mortgage lender can help you decide what is best for you in uncertain economic times.
Will Interest Rates Go Up in the Short Term?
The answer to that question depends on where you look.
Most experts look at current economic indicators and see that there is still a long way to go in the economic recovery. Job losses are still occurring and the Canadian economy is still not as robust as it could be.
Similarly, past experience tells us that our central bank will not increase interest rates until unemployment figures stabilize and the output gap (the gap between the actual level of real GDP and where real GDP would be if the economy were at full capacity) shows real signs of closing.
Others believe that the housing market needs cooling before it reaches bubble territory and that an interest rate hike is the best way to slow the market.
As a current or prospective homeowner, what should you believe? More importantly, what should you do if mortgage rates do rise and you start having trouble making ends meet?
CMI Mortgage Solutions
CMI certified mortgage brokers can help. With over thirty years of combined experience in the mortgage industry, we have the expertise to guide you through choppy economic waters.
We have the solutions you need for any circumstance:
- If you are seeking to buy your first home, we can help you find favourable terms that will give you the flexibility you need to manage changes in interest rates.
- If you have lost your job and need to refinance your mortgage, our network of lenders can help you determine the best refinancing strategy for your personal situation.
- If you opted for a variable rate and find that higher rates have put your mortgage payments out of reach, we can help you with a variety of home equity and debt consolidation options.
Our brokers are here to provide you with a clearer picture of where mortgage rates are today so you can plan your future.
