Today, the last Friday in June is typically the busiest closing day of the year. Many agents I’ve spoken with say they have had a good June, and this past week has actually been fairly busy for new purchases. I know my phone has been ringing all week and most of it new deals. The interest rate hikes seem to have spurred on some activity, but has caught others off guard. At least a couple people I’ve spoken with were surprised to hear that 3.19% is the best rate out there…..they all said “I thought rates were around 2.89%”. My response is….yes they were….2 weeks ago.
Many lenders have hiked rates significantly and I wouldn’t hesitate to guess the average rate is 3.39% to 3.59% on a 5 year fixed, although one or two I think are holding on to 3.19% for the weekend. The best deal right now is a 10 year at 3.69%. Despite all the movement in the 5 year and shorter rates, 10 year rates haven’t spiked as much. That being said…..we’re told that on Tuesday the 10 year 3.69% deal will disappear and be more like 3.99%. This is still a pretty good deal, however if you, or any of your clients want to take advantage of this deal call me anytime this weekend.
“Did you know”……Interest rates have spiked and here is why. Two things. The U.S. Fed announcement that they were considering scaling back their financial stimulus ($85 Billion a month) sometime in 2014. Secondly, there has been concerning news on money tightening in China. The markets immediately reacted by dumping bonds and subsequently the rate increases. A lot of experts have said this is an emotional reaction and will level out. Time will tell. I know this isn’t my most exciting topic ever, however my goal is to keep my referral sources educated on what’s happening and why in the mortgage industry. Hopefully this helped clear up the reasoning behind the spike in the middle of summer.
I’ll be in town part of the weekend and camping for the other part, however as usual my phone will be with me and I am always available for new business! Feel free to call me anytime and if I don’t happen to pick up just leave a message and I’ll get back to you as soon as possible.
Have a great long weekend and Happy Canada Day!