lenders going crazy

why do lenders not seem to care whether they approve files or not ???? - rates are moving up and they are currently cherry picking the market, turning down anything that doesnt suit their fancy - its time to slow the process down - make sure all conditions are accepted prior to agreeing to purchase properties. The world is spinning much too fast.

summer ?...winter ? hard to tell

Well today the wind was cool and it felt like fall in the middle of June. The past week i lost one of my aunts on my mothers side at age 75 - far too young. Joanne has gotten her cast off and now has a walking cast - so hopefully we can return to some form of normality.
Rates appear to be topping out for now - July will be interesting as the bank of canada appears set on raising the prime rate -to ensure the economy cools down - perhaps a case of overkill - time will tell.
prediction for the next year - US dollar will drop the canadian dollar will stabilize around 95 - cold will top 800 - cash will be king.
liquidity crunch will cause rates to rise - especially for consolidation fo debts.
greygoose out.

rates go up up up up......

Well the mortgage rates have moved up 4 times this month and now stand around 5.8% for 5 year money up from 5.10 - a move of approximately 3/4 of a percent.
What will happen next ? - I suspect the lenders will try to move the rates up to 6% as I have long held lenders do not like lending money under 6%.
The canadian dollar considers to hover around 93-94 cents and rumours persist the bank of canada will raise rates by 1/4 at the end of July - I still question the reasoning since the dollar is slowing our exports and should be cooling the economy - the increasing mortgage rates should serve to slow the housing market and therefore all the subsequent spin off factors.
Time will tell - for now make sure you lock in rates for 120 days especially if you have a mortgage coming due in the next 4 months or are considering a purchase.
PAYOFF your debt - keep liquidity a priority - I believe cash will be king in the next year - dont be one of those people' -big hat no cattle......
greygoose out

sens lose

Well tomorrow will be a national day of mourning in Ottawa and in Canada - as the Sens lost to The Anaheim Ducks in 5 games - final score 6-2 ducks.
isn' t it a full moon soon ?...oh well - bond rates have been rising again - chances are the lenders will increase the mortgage rates again closer to 6% - the magic number.
How long will this last ? - who knows - its still time to lock in and go along for the ride - while reducing your risk.
greygoose out - please pass the roast duck...is that a metallic taste ?????

rates move up - end of month - limit up...?

Once again lenders are increasing mortgage interest rates by as much as 30 bp to the 5.69% lever for 5 years. this was prompted by the hawkish talk of the bank of canada outlining they are likely to increase interest rates prior to the end of the year. The banks are jumping the gun to increase their spreads ...why ?....because they can !
time will tell if the bank of canada goes through with the increase - they are caught between a rock and a hard place - they have finally agreed there is inflation in the system, something we have all known - especially anyone who has a car, uses electricity, eats fresh vegetables, heats their home or pays property taxes. DUH>>>>> the bank is behind the 8 ball on this one.
The only tool they have is to control the bank rate - an increase will likely send the canadian dollar closer to parity with the US counterpart - which in turn will hurt our exporters - this could cause additional loss of jobs - and you cannot get those back in an instance - a credit crunch is coming - i am personally hoarding my cash - and reducing debt - i suggest you do the same......
gregyoose out - (where are the ice cubes and olives ?...my god have you seen the price of olives lately ????)

rates on the rise in mortgage land...but....

As predicted interest rates have moved up to 5.49% for the 5 year term - as government bond yields have risen - but will the bank of canada increase rates - I still dont think so...here is what the Globe and Mail has to say

David Dodge's conundrum
TAVIA GRANT
Friday, May 25, 2007
David Dodge has a dilemma on his hands.
On one hand, inflationary pressure has been hotter than the central bank had anticipated, suggesting interest rates should rise. On the other, the Canadian dollar's swift ascent is pummelling Canadian factories, and any rate increase could add fuel to that fire.
Mr. Dodge and other central bank officials will make their decision Tuesday at 9 a.m. EDT on their key overnight lending rate. The rate, at 4.25 per cent, hasn't budged in a year and is expected to remain unchanged next week.
“While the risks of rate hikes have definitely risen, we judge that Canadian dollar appreciation...and the prospects for continued slow U.S. growth will likely keep Dodge & Co. on the sidelines, at least through the summer,” said Michael Gregory, senior economist at the Bank of Montreal, in a report titled “What Will Dodge Do?”.
After that, traders are wagering rates will rise.
Inflation and economic data over the past few weeks have all come in stronger than expected. Core inflation is running at a four-year high and Mr. Dodge acknowledged Monday that inflation is “a little bit stronger” that the bank's projections.
“There are limits to how far the Bank will allow core inflation to stray, regardless of the state of the U.S. economy or the loonie's trajectory,” Mr. Gregory said.
Price pressure prompted economists at the C.D. Howe Institute yesterday to urge the Bank of Canada to raise interest rates — a rare occasion that the think tank differs from the actions the bank will likely take.
“Both headline and core inflation are running ahead of the bank's target, growth in the monetary aggregates suggests that inflation will continue to run above target, and the policy rate is low in real terms,” the C.D. Howe Institute's monetary council said in an agreed statement.
BMO, meantime, believes Mr. Dodge “is still prepared to bet on housing-led U.S. economic weakness ... and decelerating domestic house prices to rein in inflation pressures, with the loonie's rise to 30-year highs providing a previously unanticipated ... but welcome disinflationary bias.'
The bank did, however, change its forecast for a rate hike, saying it will likely take place late this year instead of early next year.
The Canadian dollar traded at 92.28 cents (U.S.) Friday and has climbed almost 8 per cent this year.
© The Globe and Mail

But dont forget another possibly scenario in the USA
The housing market showed stronger than expected new home sales in April - and the economy is moving at a pace exceeding 2% - I think this is based upon a war economy - if the war stops (which I am sure the US really doesnt want to see happen) the economy would be shown to slow dramatically - and the huge deficits being racked up should be bad for the US dollar and good for Gold - longer term

greygoose out

crazy hazy..lazy ???? - days of ......

well as predicted interest rates are on the rise - 5 year money is moving from 5.24% to 5.44%. yet the market is still hot in real estate and there appears to be a never ending supply of people looking to consolidate large credit card debts into their mortgages - it would appear consumer spending has not been savings and cash - but easy credit. We will shortly see the credit tighten as lenders realize that all the people they gave large limits to....surprisingly some dont pay back the money...life happens. Pay off your debt - consolidate - get ready to protect yourself against the downturn which will eventually come - its a matter of time..is Mr. Dodge - getting out of Dodge because he doesnt want to be around for the downturn ?...we will see

greygoose out