its been approximately a month since my last blog.
interest rates have continued to soften
currently lenders a giving bigger discounts for quicker closings - which reduces their costs of hedging any positions.
5 year money closing within 45 days - currently 5.39
5 year money closing within 30 days - currently 5.25
5 year money closing within 120 days - currently 5.69-5.74
prime has dropped 1/2 and will likely drop another half - inflation continues to pick up - eventually rates will bounce back - but for now - ride the wave
greygoose out
Saturday, March 8, 2008
Sunday, February 10, 2008
bed race complete
as this year's 90th President of the Kiwanis club of Ottawa - i was participating in the Bedzz race on the Rideau Canal yesterday - it was a great day with 39 teams pushing modified hospital beds down a 100 metre course on the frozen Rideau Canal. it would appear we raised over 40K for the Kiwanis Club of Ottawa - sponsored youth programs like our Read a thon which in 6 short years has reached 223 schools world wide in 11 countries and over 50,000 children per year.
Interest rates are dropping the cracks are forming in the wall posted by the major lenders - they are now starting to compete for business by dropping their rates - but is it interesting many are refusing to provide the best rates for their pre-approvals, why ?...because there is work involved and many do not become solid transactions - so they are only providing the best rates when people actually have a property to finance...rates are as low now as 5.49% for 5 years...and i still think they will continue down into the spring...
call us if you want to purchase or refinance
greygoose out....613-563-5083
Interest rates are dropping the cracks are forming in the wall posted by the major lenders - they are now starting to compete for business by dropping their rates - but is it interesting many are refusing to provide the best rates for their pre-approvals, why ?...because there is work involved and many do not become solid transactions - so they are only providing the best rates when people actually have a property to finance...rates are as low now as 5.49% for 5 years...and i still think they will continue down into the spring...
call us if you want to purchase or refinance
greygoose out....613-563-5083
Tuesday, February 5, 2008
roller coaster ride
isn't it amazing how one headline can change the perception of 'so called' investors
The US data comes out and once again a report outlines 'US heading for a Recession'
the stock market tanks and people panic.....welcome to reality - as Tim McGraw says in his song..i'm already there..take a look around......
the recession is upon us - the markets are slowing - rates will drop - and the world will not come to an end.
For now - take the floating rate
the 5 year dropped today below 5.79 - we actually have a quick close of 5.65%
and 4 year money below 5.50%.....stay the course unless you are nervous....rates will come down some more .....
greygoose out
The US data comes out and once again a report outlines 'US heading for a Recession'
the stock market tanks and people panic.....welcome to reality - as Tim McGraw says in his song..i'm already there..take a look around......
the recession is upon us - the markets are slowing - rates will drop - and the world will not come to an end.
For now - take the floating rate
the 5 year dropped today below 5.79 - we actually have a quick close of 5.65%
and 4 year money below 5.50%.....stay the course unless you are nervous....rates will come down some more .....
greygoose out
Friday, February 1, 2008
groundhog day -2008
tomorrow morning it will be groundhog day. the snow keeps coming down and it looks like we will be under a blanket of 30cm by the time its over. But it reminds me of the movie.....
it will be deja vue all over again as yogi berra would say.
interest rates are dropping slightly - the press is becoming slightly less negative - i still believe its time to take a floating interest rate of say prime less 1% for a year and ride the wave until we hit bottom on the 5 year term - which i believe will be below 5.50
time will tell - in the mean time - the best option is refinance the equity in your home and eliminate credit card and other debts - cash is king- but cashflow is checkmate......
greygoose out
it will be deja vue all over again as yogi berra would say.
interest rates are dropping slightly - the press is becoming slightly less negative - i still believe its time to take a floating interest rate of say prime less 1% for a year and ride the wave until we hit bottom on the 5 year term - which i believe will be below 5.50
time will tell - in the mean time - the best option is refinance the equity in your home and eliminate credit card and other debts - cash is king- but cashflow is checkmate......
greygoose out
Wednesday, January 16, 2008
spreads increasing
Isnt it interesting - if you read the newspapers - all you see are doom and gloom headlines.
Subprime this, subprime that - writeoffs, job layoffs, slow down - all the words that cause people to 'turtle' - pull in their feet and huddle in their homes...a slow down is coming - it will be self fulfilling.
but as i look at the market an interesting phenomena is unfolding
the 5 year govt bond rate is approx 3.4% and the discounted 5 year mortgage rate is just shy of 6% - this is a spread of 2.6%
this tells me lenders are making huge profits - they say money is hard to get - and they have to pay higher yields to investors - but i dont see it my world - traditionally the spread should be approx 1.6% so i would think 5 year money should in the range of 5%...will lenders drop rates ?
I dont thinks so - they will drop the prime rate (variable or floating rates) and keep the fixed rates high.. then when the floating rates move up - people will panic and jump to the higher fixed rates..i saw this before in the 80's...what goes around comes around...
greygoose out.....
Subprime this, subprime that - writeoffs, job layoffs, slow down - all the words that cause people to 'turtle' - pull in their feet and huddle in their homes...a slow down is coming - it will be self fulfilling.
but as i look at the market an interesting phenomena is unfolding
the 5 year govt bond rate is approx 3.4% and the discounted 5 year mortgage rate is just shy of 6% - this is a spread of 2.6%
this tells me lenders are making huge profits - they say money is hard to get - and they have to pay higher yields to investors - but i dont see it my world - traditionally the spread should be approx 1.6% so i would think 5 year money should in the range of 5%...will lenders drop rates ?
I dont thinks so - they will drop the prime rate (variable or floating rates) and keep the fixed rates high.. then when the floating rates move up - people will panic and jump to the higher fixed rates..i saw this before in the 80's...what goes around comes around...
greygoose out.....
Wednesday, January 2, 2008
HAPPY NEW YEAR - 2008
2008 - wow how time flies - this June will mark my 30th anniversary in the mortgage market. Times sure have changed - and unfortunately now, the consumer is being told to use mortgage brokers then go back to their institutions for matching - this is frustrating since we do the work and the lender - knows its approved so they match the rate and scoop the file. It would appear that simple common decency is disappearing in our society - certainly a shame.
In any event - rates rose prior to Christmas on the fixed side from 5.79-to as high as 6.14 for 5 year money. Is this to slow the Christmas rush and allow lenders to drop rates back to where they were and look like heroes in the new year ....??? time will tell.
gold is skyrocketing - oil is skyrocketing the US dollar is sinking - nothing lasts forever but dont stand in the way of a runaway train. If you have debt call us to reifnance, lower payments and batten down the hatches - now is the time to plan to reduce your debt levels
greygoose out.........
In any event - rates rose prior to Christmas on the fixed side from 5.79-to as high as 6.14 for 5 year money. Is this to slow the Christmas rush and allow lenders to drop rates back to where they were and look like heroes in the new year ....??? time will tell.
gold is skyrocketing - oil is skyrocketing the US dollar is sinking - nothing lasts forever but dont stand in the way of a runaway train. If you have debt call us to reifnance, lower payments and batten down the hatches - now is the time to plan to reduce your debt levels
greygoose out.........
Tuesday, December 4, 2007
bank prime drops
the bank of canada reduce the bank rate to 4.25% today - a reduction of .25
this will translate to a drop in bank prime from 6.25% to 6.00%which will mean the floating interest rates will be as low as 5.4% versus the fixed 5 year at 5.79-5.99
rest assured the US fed will reduce rates next by .25-.50 and this will precipitate the possibility of a further reduction to our prime on Jan 22........unless.........
the US is building a fund to protect their dollar and their housing market. They are intent on allowing cities states etc to issue tax exempt bonds which will provide funds to enable them to buy back the subprime paper whose rates are being reset at higer interest rates.
this should put a floor under the subprime problem - investors will be happy to invest their funds tax free into the mortgage market provided the borrowers are qualified and the rate provides payments which will not trigger a default....time will tell ...but i think the US will try to put a run on the shorts and cause a stampede thus higher bank and stock prices..time will tell
greygoose out...by the way....red wine is tasty
this will translate to a drop in bank prime from 6.25% to 6.00%which will mean the floating interest rates will be as low as 5.4% versus the fixed 5 year at 5.79-5.99
rest assured the US fed will reduce rates next by .25-.50 and this will precipitate the possibility of a further reduction to our prime on Jan 22........unless.........
the US is building a fund to protect their dollar and their housing market. They are intent on allowing cities states etc to issue tax exempt bonds which will provide funds to enable them to buy back the subprime paper whose rates are being reset at higer interest rates.
this should put a floor under the subprime problem - investors will be happy to invest their funds tax free into the mortgage market provided the borrowers are qualified and the rate provides payments which will not trigger a default....time will tell ...but i think the US will try to put a run on the shorts and cause a stampede thus higher bank and stock prices..time will tell
greygoose out...by the way....red wine is tasty
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