thinktorontohomes.com homeabout uscontact us
when you think real estate...
BUYERS  |  SELLERS  |  LISTINGS  |  FREE HOME EVALUATION  |  NEW LISTINGS NOTIFIER

« Average Prices in Canada | Main | Canada's Real Estate Market Stays Strong »

Bankrate: Mortgage Rates Come Full Circle

Average 30-year fixed rate now 6.32 percent, little changed from one week ago

Mortgage rates had an eventful week but ended up right back where they started. The average 30-year fixed rate is now 6.32 percent, little changed from 6.31 percent one week ago. According to Bankrate.com's weekly national survey of large lenders, the 30- year fixed rate mortgages had an average of 0.26 discount and origination points.

The average 15-year fixed rate mortgage popular for refinancing remained at 6.02 percent. On larger loans, the average jumbo 30-year fixed rate slid to 6.56 percent. Adjustable rate mortgages were mixed. The average 5/1 adjustable rate mortgage increased to 6.16 percent and the average one-year ARM inched lower to 5.91 percent.

Mortgage rates surged following the Nov. 3 employment report that showed strong upward revisions to job growth in August and September. Investors sold bonds in a flurry, pushing bond prices lower and bond yields higher. Mortgage rates are closely related to yields on long-term government bonds. But both bond yields and mortgage rates have fallen back in recent days following a number of corporate bond issuances this week.

Fixed mortgage rates are sharply lower than four months ago, when rates were flirting with 7 percent. At that time, the average 30-year fixed mortgage rate peaked at 6.93 percent, meaning that the monthly payment on a loan of $165,000 was $1,090. With the average 30-year fixed rate now 6.32 percent, the same loan originated today would carry a monthly payment of $1,023.46. Fixed mortgage rates are a compelling refinancing alternative for adjustable rate borrowers facing sharp payment adjustments.

SURVEY RESULTS
30-year fixed: 6.32% -- up from 6.31% last week (avg. points: 0.26)
15-year fixed: 6.02% -- unchanged from last week (avg. points: 0.28)
5/1 ARM: 6.16% -- up from 6.13% last week (avg. points: 0.27)

Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

For a full analysis of this week's move in mortgage rates, go to: www.bankrate.com/mortgagerates.com .

Posted on Monday, November 13, 2006 at 07:51PM by Registered CommenterJoanna in | Comments1 Comment

Reader Comments (1)

Unbelievable that in the midst of a market meltdown (never mind the economic downturn and financial sector panic in the U.S.), most if not all major Canadian Banks decide to not pass on the full BOC interest rate reduction.

Instead, their idea of great policy is making a profit while thousands and thousands of ordinary Canadians are now faced with losses in both retirement and non retirement assets and income. This is absolutely ridiculous. Where does the greed end...
October 9, 2008 | Unregistered CommenterAndre

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
All HTML will be escaped. Hyperlinks will be created for URLs automatically.