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Mortgage rate speculation in Canada

It is very important to keep a track of the mortgage rate so that people know when it is the right time to invest in a mortgage deal, so that they don’t lose out on much money and get the most profits out of those deals. Similar to the US crash which took place in the year 2008, a very similar trend took place in Canada when the housing market crashed and there was a sharp decline in the economy of the country. Since then, investors and customers have been looking out very sharply to the rise or fall of mortgage rates because no one really wants to make the mistake of getting into a mortgage deal and finalize on something at the wrong rate when the rates are largely fluctuating. After the fall in the mortgage rates in between at the beginning of the year, a lot of people rushed into buying new homes with the hope and wish that the rates will again increase over the coming months and that the low mortgage rates are going to be drifting again soon. People find it profitable to buy homes when the mortgage rate is at a downfall and hope or expect for the mortgage rates to rise soon after the rates have seen a diminishing effect on them.

The economists of Canada have been assuring the population of a rise in the mortgage rates after this phase of really low mortgage rates rushing off. This was primarily the reason why so many people went to their real estate agents and brokers in order to buy a home immediately before the rates went up again. Yet, it has been over the last few months that the mortgage rate has still remained more or less the same. The mortgage rate still remains to be about 3.4% or less and does not even take the name of getting up a little higher than it was before. The fact that the economists stated of a high rise in the rates has still not turned out to be true and has remained fixed for a long period of time now, thus even giving the impression to an extent that the mortgage rate might just remain stagnant for a long time now. By saying long time, it could also necessarily mean for a period of about 5 years as well that the mortgage rate will remain the same or just fluctuate by some few decimal points. Mortgage companies have been offering some great deals and there has been a large increase in sales of new homes, yet the mortgage rate still remains the same and just makes no effort to show any signs or change by quite a difference. Also keeping in mind the fact that this mortgage rate could be the same for the next 5 years probably, offers like this to invest in and buy a new home seems to be very attractive and appealing to people who don’t mind making some quick bucks out of some great mortgage deals and selling out their new bought homes later in the coming years for a much greater and a high price.

The house market bubble bursting and the economy’s sharp downfall have given rise to three false alarms over the past 5 years, false alarms regarding the increase or decrease in the mortgage rates. In a country like Canada which is well functioning and well versed with the government regulations and the economy of which has seen a moderately good growth, irrespective of such false alarms related to the rate increase or decrease, the country has been well off without any involvement of recession or inflation rates. Yet, speculating the increase or decrease of rate in such a cumbersome and tough situation still persists and the false alarms concerning the rates still grow incessantly. It has at times so happened that a downfall in the economies of the U.S and Europe has been the cause of a mjorly good rise and growth in the mortgage rates of Canada. This sharp economical downfall in the US and Europe has refrained investors from investing into housing and property in the European countries and investing more in cities such as Ontario, Toronto and Vaughan, and other cities of Canada. This has surely come as good news to Canada as there was an increase in the investment in government bonds and the investing relationships got stronger and reliable. Large growth in the investment sector would surely bring about a good and an effective rise in the fixed mortgage rates in Canada, thus bringing about profits and good news for all those who had invested in buying new homes and properties earlier speculating for a rise in the mortgage rates.

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