Guest guest Posted November 7, 2005 Report Share Posted November 7, 2005 Hello Dear List Members, Would like the opinion of list members here on Mortgage Rates for Canada. I am having a little bit of a problem making a determination in this area. Mortgage rates(especially the short term rates) depend on the health of the economy and the inflation. Rise in inflation increases the mortgage rates becuase this implies a good economy. But this time, the increase in inflation rates has come about from higher gas prices so mortgeage rates should not be increased, yet they were increased becuase the overall economic figures, mainly employment rate was better hence inspite of higher gas prices, the prime rate by bank of canada increased increasing the short-term mortgage rates. Whats the takes by mundane astrology on tyhis trend. Will interest rates go upo over the next few years or will there be a dip. Regards, BJ Quote Link to comment Share on other sites More sharing options...
Guest guest Posted November 8, 2005 Report Share Posted November 8, 2005 My view point:- 1. Real estate trees don't grow to the sky. 2. Canada housing sales mirrors that of the USA 3. We have already hit the market peak. 4. When BOC starts to raise rates, it's not a one time deal - expect more to come. 5. Higher rates means that money is more expensive to borrow, hence less people will buy 6. In 5-7 years, we should have cheap money and market exhaustion once again - look for BOC rate cuts then as the trigger. My recommendation: lock yourself into something low and non-variable for the next few years. It would be nice if some SAMVA pro will venture a view. Best regards, Vyas Munidas SAMVA , " b_jamnadas " <b_jamnadas> wrote: > > Hello Dear List Members, > > Would like the opinion of list members here on Mortgage Rates for > Canada. I am having a little bit of a problem making a determination > in this area. Mortgage rates(especially the short term rates) depend > on the health of the economy and the inflation. Rise in inflation > increases the mortgage rates becuase this implies a good economy. But > this time, the increase in inflation rates has come about from higher > gas prices so mortgeage rates should not be increased, yet they were > increased becuase the overall economic figures, mainly employment rate > was better hence inspite of higher gas prices, the prime rate by bank > of canada increased increasing the short-term mortgage rates. Whats > the takes by mundane astrology on tyhis trend. Will interest rates go > upo over the next few years or will there be a dip. > > Regards, > BJ > Quote Link to comment Share on other sites More sharing options...
Guest guest Posted November 9, 2005 Report Share Posted November 9, 2005 Many thanks Vyas for your opinion. Regards, BJ SAMVA , " vyasmunidas " <munidas@r...> wrote: > > My view point:- > > 1. Real estate trees don't grow to the sky. > 2. Canada housing sales mirrors that of the USA > 3. We have already hit the market peak. > 4. When BOC starts to raise rates, it's not a one time deal - expect > more to come. > 5. Higher rates means that money is more expensive to borrow, hence > less people will buy > 6. In 5-7 years, we should have cheap money and market exhaustion > once again - look for BOC rate cuts then as the trigger. > > My recommendation: lock yourself into something low and non- variable > for the next few years. It would be nice if some SAMVA pro will > venture a view. > > > Best regards, > > Vyas Munidas > > > > SAMVA , " b_jamnadas " <b_jamnadas> wrote: > > > > Hello Dear List Members, > > > > Would like the opinion of list members here on Mortgage Rates for > > Canada. I am having a little bit of a problem making a > determination > > in this area. Mortgage rates(especially the short term rates) > depend > > on the health of the economy and the inflation. Rise in inflation > > increases the mortgage rates becuase this implies a good economy. > But > > this time, the increase in inflation rates has come about from > higher > > gas prices so mortgeage rates should not be increased, yet they > were > > increased becuase the overall economic figures, mainly employment > rate > > was better hence inspite of higher gas prices, the prime rate by > bank > > of canada increased increasing the short-term mortgage rates. > Whats > > the takes by mundane astrology on tyhis trend. Will interest rates > go > > upo over the next few years or will there be a dip. > > > > Regards, > > BJ > > > Quote Link to comment Share on other sites More sharing options...
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