Fixed mortgage rates have been increasing steadily over the last year. We have seen an increase of approximately 1.5% from the bottom of rates to where they are today just under the 4% mark. The Prime rate that lenders use for variable rate mortgages and lines of credit has also increased steadily over the same time period as well.
We have been hearing rumblings over the last few weeks though that the increases may be slowing or even stalling for a while as the effects of higher interest rates take their hold on the housing market and consumers ability to borrow. Even in the last week we have seen a couple of lenders pull their rates back slightly.
As the mortgage lending business slows for all major banks and lenders we may see some slight downward pressure on rates as banks compete more aggressively for a piece of a smaller pie. It’s very early in the year to say what will happen for sure as many factors can change the way rates go fairly quickly. If you are in need of a mortgage in the upcoming year it’s best to keep an eye on rates and get a rate secured for up to 4 months just in case they move upward again.
If you need more information regarding mortgages or if you need any advice on your personal situation please contact our office at 604-556-3893 or email at [email protected]
For more information on our mortgage products and your preferred Abbotsford Mortgage Broker please visit our website at www.ymscanada.ca.
Comments Off on Rise in fixed mortgage rates stalls