| Laura Burt |
| Professional Mortgage Planner |
In the last few months, interest rates have felt a little more like the stock market with all of the ups and downs. In June, we saw interest rates climb into the high 4% range with your typical 5 year, fixed rate at 4.79% and the mortgage qualifying rate at 6.5%.
In the last few weeks, interest rates have again been on the decline and we expect them to drop a little further over the next couple of days, depending on the lender.
Current Rates:
5 year fixed rate: 3.89%
3 year fixed rate: 3.50%
3 year closed variable rate: Prime -.70%
The current qualifying rate is 5.59%. This is almost a percent lower than a few months ago. Every little increase to the qualifying rate makes for a large decrease to the maximum mortgage amount you qualify for.
The prime interest rate has seen two increases since June 1st of this year. The current Prime Rate is 2.5%. If you are currently holding a variable rate mortgage, you will have seen two small increases to your monthly payments. I am still recommending you stay in your variable rate and not lock in yet.
Housing sales in Calgary have slowed dramatically over the last month, especially compared to this time last year. Homes are on the market much longer, with the average sale time climbing to 7 months. Inventory is high, giving you the luxury of holding out to find that perfect place. The Fort McMurray market has also seen a slow in sales and inventory is noticeably high as well. Although one would think that home prices would have decreased with the increase of inventory on the market, surprisingly enough, prices have remained stabilized.
Some food for thought... a report on the news last week predicted Calgary as being the number one city to invest in real estate over the next 5 years!
Contact Information |
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403.681.9099 |
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1.877.875.1946 |
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403.457.1548 |
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