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Dear Clients,

Summer hit this week and time for the kids summer run.   Oh the days of playing all day. 

Attached are two articles.  One is showing how the cities are rating on economic activity.  Hamilton looks a little pale but not from our office as we have never been this busy with purchasers and so many new young people buying into the market.  I think we have had about 130 new clients join us so far this year.  We are having so much fun and it is a great feeling to have them as clients right off the bat as chances are we can save them a lot of costly errors.

The second of the articles is from Benjamin Tal, CIBC world markets.  Talking about our non recession, recession.   Kind of interesting.  I am still a little timid about this buoyant market until after the summer though. 

The following is part of an article from a CMHC Report just released about broker service.  It seems the younger buyers that are keeping us so busy are mostly going to brokers as they see the value in using the free services of someone that works for them not the bank.   Yeah!  And we try harder as it is the clients make our business so successful.

First-time buyers

increase their use of

mortgage brokers

Survey results show that during the past

twelve months about one-quarter of all

mortgage transactions were arranged

through the mortgage broker channel. Most

notably, broker share among first-time

buyers has increased to 44%, up from 35%

in 2007. Among other market segments

broker share has remained stable. In

particular, broker share among those

renewing their mortgage continues to be

relatively stable at 12%.

Demographically, brokers tend to do better

among younger purchasers aged 25 to 34

years (42% share), and female purchasers

(43% share).

Client satisfaction still

relatively strong

Client satisfaction levels remain high Broker origination share by customer segment

Nothing but good news this week!

Have a great Canada Day  Rates below.

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Dear Clients

Here is an e-mail I received yesterday about bond yields that indicates a rise in fixed rate mortgages.  If you read carefully there is nothing really supporting this rise and we did see a rally in the market in the past week with nothing supporting it.  There is still the prediction it is going to be a rough early fall in the markets and interest rates if they start going up now may go back down then even further than we have now.  The economists do not agree that this bond yield increase is sustainable so I only agree with them.

Bottom line for those of you with mortgages UNDER PRIME do not lock in - for those of you over prime you might entertain a lock into a THREE yr. fixed term but could be a bit premature.

Just make sure:

•1.    you are not planning to move in the next 3 or 5 yrs that you lock into

•2.    you are not planning renovations

•3.    you are not running up any debt on credit cards or Lines of credit

•4.    you are not going to loose your job or have mat leaves or any other decreased income

remember I can not talk to all of you at once.  THIS IS NOT A TIME TO LOCK IN THE OPINION OF THE EXPERTS.  Just letting you know so you do not panic if you see rates increase for a bit.

Cheers and have a great weekend,

Suzanne

Here is the information on the bond yields.

OK folks, here we go...a long predicted rise in interest rates is imminent.  Rates above 4% are very likely.  Here are the details:

The 5 year bond rate was up 0.21 yesterday (that is the biggest one-day jump since I started this chart back in February) to 2.58.  That is up 0.57 from four weeks ago (2.01).  And that reduces the spread to 1.31%.  Plus, this all happened on a day when the TSX dropped by 143.76 points (usually when the stock market goes down, bonds yields go down too).  We expect that other lenders will be increasing rates as early as today.

FirstLine MCAP First National and Merix rates - prime still at 2.25%

3 yr    3.44

4 yr    3.79

5 yr    3.89