Mortgage Rates News

Article Source: http://firstmortgagerates.ca/

Tuesday's bond market has opened in negative territory with stocks higher and unfavorable comments from Fed Chairman Yellen. The stock markets are reacting as we would expect, with noticeable gains during early trading. The Dow is currently up 84 points while the Nasdaq has gained 20 points. The bond market is currently down 10/32, which should push this morning's mortgage rates higher by approximately .250 of a discount point.

There was no relevant economic data posted this morning, but the bond market is reacting negatively to the prepared statement that Fed Chairman Janet Yellen is presenting to the House Financial Services Committee late this morning. The statement was released at 8:30 AM ET, giving the markets insight into the Fed's thought process and if there are any apparent changes from former Chairman Bernanke's stance on key economic and monetary policy issues. The release of the statement allows the markets to respond prior to her actually speaking. That significantly reduces the possibility of seeing extreme volatility in the financial and mortgage markets when she is speaking to the committee. We still have the Q&A portion of the proceeding that certainly can bring an unexpected response and further movement in the markets. However, unless something is said that is very much unexpected, we likely have already seen the biggest move in response to today's events. Her statement indicated that the Fed was expecting to keep reducing the monthly amount of bond purchases under their current stimulus program (QE3). She pointed towards gains in the employment sector but noted that there is still a need for much more improvement. It also said that the Fed needs to pay attention to more than just the unemployment rate and payroll numbers when determining its next move. Another key point that analysts were looking for and got was an indication that the recent volatility and concerns in the global markets is not likely to affect the U.S. economy. Overall, the statement didn't give too much in terms of surprises. The comments regarding the employment sector and the need for more growth could be taken as a positive for the bond market and mortgage rates as it hints at current economic weakness, although she says the sector is strengthening. Unfortunately, the remarks about continuing its QE3 tapering with little hesitation and that the global financial concerns will not be a headwind to our economic growth are clearly negative news for long-term securities such as mortgage bonds and have fueled this morning's bond selling. Tomorrow also has no relevant economic data that is expected to influence mortgage rates. But it does bring us the first of this week's two important Treasury auctions that can easily affect bond trading and mortgage pricing. The Treasury will sell 10-year Notes tomorrow and 30-year Bonds Thursday. Tomorrow's auction is the more important of the two as it will give us a better indication for demand of securities that are close in term to mortgage-related bonds. If the sales are met with a strong demand from investors, we should see the broader bond market move higher during afternoon trading tomorrow and/or Thursday. However, a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to broader bond selling. The selling in bonds would likely result in upward afternoon revisions to mortgage rates. Results will be posted at 1:00 PM ET.

Good Solid Advice About Home Mortgages That Anyone Can Use

Article Source: http://bestmortgagebrokers.net/

When you wait for mortgage approval, you may feel a lot of stress. There are a lot of regulations and recommendations for you, but the following information will educate you with some ideas about what you will need to be approved. These simple tips are meant to help you get through the process of getting a mortgage loan.

To make sure that you get the best rate on your mortgage, examine your credit rating report carefully. Lenders will make you an offer based on your credit score, so if there are any problems on your credit report, make sure to resolve them before you shop for a mortgage.

Before beginning any home buying negotiation, get pre-approved for your home mortgage. That pre-approval will give you a lot better position in terms of the negotiation. It's a sign to the seller that you can afford the house and that the bank is already behind you in terms of the buy. It can make a serious difference.

If you are planning on purchasing a house, make sure your credit is in good standing. Most lenders want to make sure your credit history has been spotless for at least a year. To obtain the best rate, your credit score should be at least 720. Remember that the lower your score is, the harder the chances of getting approved.

Try to have a down payment of at least 20 percent of the sales price. In addition to lowering your interest rate, you will also avoid pmi or private mortgage insurance premiums. This insurance protects the lender should you default on the loan. Premiums are added to your monthly payment.

Many people who search for a mortgage have to deal with a lot of stress when they try to have their mortgage approved. Obtaining financing does not need to be stressful. This article has provided some necessary advice and simple to tools to help you through the process.

Toronto House Prices Soar Into The Stratosphere

News Source: http://www.applymortgageonline.ca/

Toronto home sales caught fire in the first half of May, but at this frenzied pace, homeowners better hope that fire doesn’t burn everything down.

The latest numbers from the Toronto Real Estate Board suggest a market so strong that it might just be overheating: Sales volumes jumped 19.6 per cent compared to the first half of May in 2013, and prices followed.

The average cost to buy a house in Toronto, including condos, soared to $663,787, up 11.5 per cent in the space of a year. In the Greater Toronto Area, prices were up 8.9 per cent, to $542,047 on average.

Condo prices in Toronto were up 12.2 per cent, to just under $400,000 on average, while single-family homes jumped 13 per cent to $966,867. (By Teranet’s measure, single-family houses have already surpassed the $1 million mark.)

So is this a sign of a strong, healthy market or a sign of extreme overheating?

Compare those house prices to inflation, which was running at a 1.5-per-cent clip last time StatsCan checked, and to wage growth, which is clocking in at about 2.3 per cent per year. Toronto’s house prices are far out of proportion, and affordability is inevitably deteriorating.

Toronto’s real estate board isn’t sounding the alarm just yet.

“While tight market conditions continue to prompt strong year-over-year increases in the average selling price, it is important to point out that the monthly cost of home ownership – mortgage principal and interest, property taxes and utilities – has not trended upward as strongly. Strong price growth has been mitigated to a large degree by low borrowing costs,” the board's senior market analyst, Jason Mercer, said in a statement.

Incredibly, those low borrowing costs may yet sink lower, if other lenders follows the example of Investors Group, which recently introduced a variable-rate mortgage starting at just two per cent.

All the same, the sudden acceleration in house price growth should concern housing bubble-watchers. As BMO economist recently showed in a chart, bubbles tend to be preceded by a sharp increase in prices. Here, we see sharp price growth before the housing bubble burst in Toronto in the early 1990s. The more recent run-up in prices has not been as steep — until now.

bmo toronto home prices

Despite the strong numbers coming out of Toronto and some other markets like Calgary and Vancouver, some economists have already declared an end to Canada's long-running housing boom. A recent report from Scotiabank predicts the housing market is about to shift from being a major driver of economic growth to being a drag on GDP.