Mortgage Interest Rates Discussion

It looks like mortgage interest rates are beginning to settle once again; with a drop of nearly 0.30% over the past 2 weeks in five year fixed rate mortgage interest rates --lessening the blow of the nearly 1% increase in early May, 2010. Today, existing and potential Canadian Homeowners can get a 5 year fixed rate mortgage with an interest rate as low as 4.35%, subject to qualification criteria.

Just 3 weeks ago, it appeared that we were finally on a path to returning to historical averages in mortgage interest rates --but the trend was unable to be sustained. With increased pressure from foreign markets, and a drop in real estate activity has resulted in precisely the drop indicated above. Normally, spring means higher fixed mortgage interest rates, however, this year that may not be the case. In the coming weeks and months, if market activity increases and other economic factors allow, Canadian mortgage lenders will likely again test the market's ability to tolerate a return to what would be considered historically "normal" fixed mortgage interest rates.

For more information about mortgage interest rates, call one of the qualified mortgage professionals at Alberta Mortgag e@ 780-479-2222 or visit http://www.albertamortgagecentre.com.