The recent data sure has changed the tone of rates in the last few weeks…
The prime rate – what variable rates are based on– was a few short weeks ago expected to rise three times in the next 18 months – now, latest data shows signs of a slowing market and uncertainty in projects moving forward as expected. There are also signs that further rate increases could be delayed until next spring.
The bond market (what fixed rates are based on) has dropped, which means rates (after the banks have hung on as much as possible ) should come down slightly.
What does his mean for borrowers? Let’s break it down per segment:
- Homebuyers – more affordability due to the recent dip in prices – pending price category anywhere from 10-30%. Remember, working with an unbiased mortgage professional, we do a full look back upon closing to ensure the lowest cost of borrowing.
- Home sellers – price correctly if you want to sell or else no point in being on the market.
- Renewals rejoice – payment shock will be reduced upon renewal time with decreasing rates.
- Those carrying debt outside of a mortgage ex: credit cards, car payments, lines of credit – now is the time to see how moving that debt into a new restructured mortgage will improve your cash flow. It’s the most effective strategy for protecting your credit!
The market is always changing – yesterday’s news is exactly that. Aligning yourself with the frontline experts will help you with clarity in this ever-changing market! If you have any questions about your mortgage renewal or are thinking of making your next big move, give us a shout!
Ready to chat more about your mortgage options? Let’s book a time to meet!
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