Predictions on US interest rates and where they are heading over the next while

This is what the so called experts are predicting on US interest rates and where they are heading over the next while.

This week (Oct. 4 - Oct. 10) the experts say: There is still much uncertainty as to whether rates will rise or fall.

Experts' comments
The 10-year is currently trading at 4.55 percent and has not moved much, which is no surprise. Conforming rates have been steady. The jumbo market has stabilized a bit, with some big players coming back into the market and others making pricing corrections for the better. We will continue to see an improvement in rates through the end of the year. Remember the Fed is watching LIBOR closely and that will help determine what the Fed does next month.
Mitch Ohlbaum, president, Legend Mortgage, Los Angeles

Stocks will soon tumble as consumer spending continues to slow. Bonds will soon rally, meaning mortgages will become much more affordable.
Jeff Lazerson, president, Mortgage Grader, Laguna Niguel, Calif.

This market doesn't have enough data, one way or the other, to cement a major shift. One thing is certain: Locking your loan early is the best bet. Mortgage bonds are trading in a range with stiff upward resistance and the slightest sign of inflation could send interest rates through the roof overnight. Expect volatility.
Dan Dowling, president, United Mortgage Capital Corp., Altamonte Springs, Fla.
unchanged
Money is flowing back into stocks at the expense of mortgage bonds. Rates will move higher as a result.
Dan Green, mortgage planner, Mobium Mortgage, Chicago

We are sitting in the middle of a six-week range of interest rates as short-term volatility is becoming the norm. What's causing this are inflationary fears from the last and forthcoming cuts from the Fed tempered by weak economic data. Look for this to continue. Opportunities will exist to capture a lower rate on the right days.
Jim Sahnger, mortgage consultant, Palm Beach Financial Network, Stuart, Fla.

We are seeing some lower rates from jumbo investors, but it is obvious that they still have to sell the stuff they have been sitting on for the past two months. With the housing market soft and mortgage rates artificially high with lower demand, there is little reason to sell that stuff at a loss unless there is opportunity to loan that money again at a profit. It is sort of a Catch-22.
There is no underlying problem here. The folks who hold those mortgages will sell them and the machine will get running again, it just appears that they are in no hurry.
There are a few strategic things which will result from this. Some banks will only make mortgage loans originated by their own employees. Some may stop taking loans from brokers.
Dick Lepre, senior loan officer, Residential Pacific Mortgage, San Francisco

Bankrate's analysts
The forward path of mortgage rates will hinge on the outcome of the employment report. I'll say that revisionist history shows job growth in the past two months and, while not pretty, it wasn't as bad as initially thought. This will give mortgage rates a slight bump.
Greg McBride, senior financial analyst, Bankrate.com

The economy appears to be slowing down. Today's rates seem low by this summer's standards, but they were lower than this for much of last fall to this spring. Those lower rates are the norm.
Holden Lewis, senior reporter, Bankrate.com

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

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Bank holiday - Mortgage Interest rate updates and Happy Thanksgiving

Monday was a bank holiday. With the sound of air conditioners buzzing it's hard to believe it's Thanksgiving!

• Interest rates have remained stable; however, most lenders have changed their pricing on Variable Rate Mortgages. Currently, Prime less .90% is available through only 1 lender. Others have decreased the discount to Prime less .50% and even Prime less .25%.
  
• Question: Do I need a rate hold if I plan on a variable rate mortgage?
• Answer: Yes! The rate hold will insure you get the lender's current discount - if the lender decides to change the pricing, within your rate hold period, your pricing discount remains in effect.
  

Mortgage Interest RATE UPDATE
October 5th, 2007

Prime Rate.6.25%
Variable Rate.Prime less .90%
1 year closed.5.60%
3 year closed.5.70%
5 year closed.5.60%*
7 year closed.5.78%*
10 year closed...5.85%*
25 year closed...6.70%

* for mortgage of $500,000 or greater; slightly higher rates for lower mortgage amounts
Information subject to change without prior notice. APR.E.&O.E.

If you have hosting duties this weekend, or need to bring along a dessert - this recipe is an alternative to the traditional pumpkin pie.

I hope you have a wonderful weekend!

PUMPKIN SQUARES

Easy to make, all the flavour of pumpkin pie without the work.

2 cups (500 ml) flour
1/2 cup (125 ml) icing sugar
1 cup (250 ml) unsalted butter, cubed
1 tsp (5 ml) salt
3 eggs, beaten
2 cups (500 ml) canned pureed pumpkin
3/4 cup (175 ml) packed brown sugar
1/3 cup (75 ml) corn syrup
1/2 cup (125 ml) whipping cream
2 tsp (10 ml) lemon juice
1 tsp (5 ml) vanilla extract
1 tsp (5 ml) cinnamon
1/2 tsp (2 ml) allspice or nutmeg
1/2 tsp (2 ml) ground ginger
1/4 tsp (1 ml) salt

• Preheat oven to 350F
• Line 9 x 13" baking pan with parchment paper
• Mix flour & icing sugar together with butter & salt in food processor or by hand until mixture just comes together (do not let it form into a ball). Pat into lined baking pan & bake for 15 minutes or until golden at edges.
• In food processor or blender, combine eggs, pumpkin, sugar, corn syrup, whipping cream, lemon juice, vanilla, cinnamon, allspice, ginger and salt. Process until well combined. Scrape sides & process again.
• Pour over base & bake for 35 to 45 minutes, or until centre springs back when touched. Cool squares.
  

Topping

Drizzle over squares for a great look or skip this steps & serve plain

2 tbsp (25 ml) butter
2 tbsp (25 ml) cream cheese
1/2 cup (125 ml) icing sugar
1/4 cup (50 ml) milk (or less)

• Combine butter & cream cheese with hand beater until soft and fluffy. Beat in icing sugar & milk. Use icing bag to drizzle over squares. Chill then cut into 24 squares.
  

Recipe from Food & Drink, Autumn 2003

Hapy Thanksgiving from Mark!

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
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Understanding Your Credit Report and Credit Score

Understanding Your Credit Report and Credit Score

What many prospective borrowers don't realize is that the pricing of mortgages and other loans is based in part on their credit-worthiness. Consumers need to be aware of how their credit is evaluated by lenders, and how they can work to avoid so-called "bruised credit" people with a lower credit score can find themselves paying a higher interest rate, or even denied access to certain types of loans.

A credit report is a detailed history of how consistently you meet your financial obligations, and provides a picture of your financial health based on your past behaviour. A credit score is a three-digit number, usually between 300 and 900, representing your overall credit-worthiness, based on personal information from your credit report and other sources.

Both your credit report and score are important. When deciding whether or not to grant a mortgage loan, lenders refer to an applicant's credit report and score, along with a range of other factors such as income, employment history, and size of down payment.

The higher your score the more likely you are to be approved for a mortgage and receive favourable rates because the lender considers you to be a better credit risk. Several factors are used by the two credit agencies in Canada (Equifax Canada and TransUnion Canada) to calculate credit scores:

• Debt payment history.
  
  
• Amounts owed compared to your current credit limits with lenders.
  
  
• How often you seek new credit.
  
  
• Length of time you have had credit accounts.
  
  
• Type of credit, such as car loans, lines of credit, credit cards.

Interst Rates

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?



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• See seasonal housing patterns

TD Canada Trust predictions for remainder of year

TD Canada Trust predictions for remainder of year



HIGHLIGHTS

• Canadian economy records steady growth


• Cross-currents will continue to blow across Canada's major industries


• Inflation monster continues to lurk in the background

This morning's release of Canadian gross domestic product (GDP) for July – while falling in on the soft side of market expectations – revealed that the economy continued to churn out steady gains early in the third quarter. The 0.2% month-to-month increase recorded in the month leaves the economy on track to record a respectable rate of growth of 2.5-3% in the third quarter, which is only modestly slower than the 3.5% average outturn clocked in the first half of the year. As has been the case in recent months, the service sector remained the tower of strength, forging ahead by 0.3% on a month-to-month basis in July and counter-balancing another soft performance on the goods side (-0.1%). Since monthly data are notoriously volatile, we've provided a snapshot of year-over-year changes across the sub-industries As can be seen, the service areas have reigned supreme, while Canada's export-oriented manufacturing sector has struggled.



The headwinds will increase



While the weaker-than-expected GDP result pushed down Canadian bond yields and took some steam out of the overnight rally in the Canadian dollar – which had pushed the loonie to 1.007 U.S. cents – investors are more concerned with what may lie ahead. For one, neither the GDP data for July nor August's stronger-than-expected Canadian employment report factor in the fallout from the recent financial turmoil that spread across the globe. Certainly, credit conditions have improved since the height of the mid-August turmoil, with interest-rate spreads on riskier assets easing from their highs. Still, international credit markets have not returned back to normal, as evidenced yesterday when both the Bank of Canada and the ECB moved once again to inject liquidity into their respective overnight market in order to ease the upward pressure on lending rates. In Canada, participants of the Montreal proposal that aims to resolve the third-party asset backed commercial paper (ABCP) crisis announced this week that they will need more time to find a solution to the issue.



Perhaps more importantly, the prospects of the U.S. economy have steadily dimmed since the summer. This week's reported 4%/8% drop in new/existing home sales and further deterioration in prices point to a housing market retrenchment that still has at least a year to run. Investors were served up some better news this morning, with the reported 0.6% gain in U.S. personal spending, which topped forecasts. Yet the spotlight quickly turned to the weaker-than-expected 0.3% gain in personal income that put downward pressure on the saving rate.



Given that 70% of U.S. GDP is tied to the consumer, so much of the near-term outlook Stateside rests on the performance of the job market, and in turn, the level of business confidence. We remain optimistic that the business sector will keep its head above water in the months ahead, supported by still-healthy balance sheets and cash positions. This week's report on durable goods for August highlighted the fact that while non-defense capital spending has slowed over the past few months, it remains at a respectable level. Certainly, next week's U.S. non-farm payrolls report for September will provide precious insights. Our bet is that employment growth resumed in the month, but by only 75,000 jobs. This pace is consistent with our outlook for lethargic quarterly real GDP growth of 1.5-2% in the near term.



Cross-currents in Canada's economy



The chillier headwinds from tighter credit market conditions and softness in the U.S. economy will not be lost on Canada's economy. Little reprieve can be expected in manufacturing, which has seen its cost edge evaporate from the surge in the Canadian dollar. In some areas – notably autos – U.S. producers appear to be moving to shore up profitability, exacerbating the manufacturing challenge for Canada. That said, other industries will continue to enjoy solid conditions. Consumer-driven industries, such as wholesale and retail trade, will continue expand at a decent rate, supported by a 33+ year low unemployment rate. These two industries also top the list of Canadian sectors actually benefiting from a soaring loonie. Housing markets may have started to cool in Alberta, but ongoing strength nation-wide should continue to provide enormous spill-over benefits across the gamut of goods and services industries. Although resource companies are confronting rising costs and a higher loonie, ongoing rapid expansion in China will continue to provide a solid underpinning on prices for oil and metals. Above all, this week's announced $14 billion federal budget surplus for fiscal 2006-07 served up a reminder that government coffers in Canada are the envy of the G-7, providing wiggle room to initiate tax cuts and other measures to help offset some of the challenges on the competitiveness front.



Netting out these offsetting headwinds and tailwinds, we project economic growth in Canada to run at a rate of about 2% over the next year. This moderate pace will continue to fuel debate about the Bank of Canada's likely next move. In a speech this week, Bank of Canada Governor Dodge indicated that the current rate setting was appropriate in view of the downside risks to growth and inflation emanating from the U.S. and the upside risks from booming housing activity.



As we discuss in the latest monthly edition of TD Global Markets, released yesterday, it is the inflation risk that is likely to win out, prompting the Bank of Canada to raise rates by 25 basis points in December after the Fed delivers one final rate cut at its October confab. Given that financial markets are pricing in more significant easing in the U.S. and are still betting on a modest easing in Canada, we are projecting a backup in yields on both sides of the border by 30-40 basis points by year-end. Lastly, the Canadian dollar will end the year at parity before falling back to about 95 U.S. cents in 2008. Article courtesy of R.Paul Chadwick from TD Canada Trust

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?


• On-Line Real Estate Newsletter sign up


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RBC's comments on Provincial Current Trends

PROVINCIAL CURRENT TRENDS

September 2007

Western provinces powering Canada's jobs bonanza

August's employment report showed that overall job gains for the first eight months

of the year were up an estimated 232,000. The unemployment rate held at its lowest

level since 1974 and wage growth continued to firm. The average hourly wage rate

for permanent workers was up 3.8% year-over-year in August, marking the fastest

pace of increase in a year and the fifth consecutive month of solid gains.

Tight labour markets provide yet another piece of evidence that Canada's domestic

economy is still on firm footing despite some weakness in job markets now evident

in the United States (chart 1). Healthy job growth, an historically low unemployment

rate and the recent acceleration in wage growth highlights the fact that Canada's

economy is operating above its capacity limits.

The strength in Canada's headline national number is largely the result of the ongoing

strength in western job markets. Alberta, British Columbia and Saskatchewan —

in that order — are the clear leaders on the labour market front (chart 2), clocking in

the strongest pace of job gains, the lowest unemployment rates and the fastestgrowing

labour forces.

There is also notable strength coming from Quebec's labour market, which has

added 71,000 jobs since the start of the year. Ontario's job growth is slowing relative

to the national average and its unemployment rate has edged up from last year's 6%

low but, overall, still remains healthy. Job conditions are mixed in Atlantic Canada.

Prince Edward Island and Newfoundland are tracking decent job growth. Nova

Scotia's job growth has recently slowed down, while New Brunswick started 2007 on

a slow note, but its job growth has recently started to pick up.

British Columbia —Labour markets in the province are still tight,

with the year-over-year pace of job growth setting a healthy 3.2% pace

and the unemployment rate holding just above 4%. Wage growth

slowed down earlier in the year but has recently firmed, with two consecutive

months of decent gains. The province accounted for roughly 20% of

Canada's total job gains reported in the first eight months of the year. Jobs were split

roughly equally between the goods sector and the service sector. The construction,

finance, insurance, real estate, and leasing sectors have been the biggest contributors

to provincial employment so far in 2007.

Alberta —The province still leads all provinces in all key job market

indicators, including job gains, unemployment rate, labour force growth

and wage gains. Hourly wages in Alberta are running at a healthy clip

but are down from last year's 7% pace and are now tracking at about

5.3% so far in 2007 — a pace that continues to significantly skew the national rate.

Alberta's labour force continues to expand to accommodate the growing demand for

workers. Net interprovincial migration, although down from last year's third-quarter

peak at 24,535 migrants, is still the strongest in the country and continues to

attract workers from right across Canada. Despite accounting for only 13% of

national GDP, the province has been the single biggest contributor to job gains

this year, with 96,000 jobs created in the first eight months of the year compared

to the same period last year.

Saskatchewan — Job markets picked up momentum in the latter

part of 2006 and early in 2007, but have since started to cool off.

The provincial unemployment rate is still one of the lowest in the

country but has been trending upward in the last six months. The

unemployment rate bottomed out in March at 3.8% but has since climbed just

over a full percent to reach 4.9% in August. Wages, however, are still growing

at a healthy clip. The recent softness showing up in job markets is coming from

the service sector, while the goods sector has actually picked up momentum. In

fact, the construction sector was the only major contributor to job gains in

August, adding roughly 3,800 jobs. Housing shortages are fuelling this recent

surge in construction employment.

Manitoba —The pace of annual job growth in Manitoba has been

holding just above 1% so far this year and unemployment is tracking

at 4.5%. Hourly wages in Manitoba have accelerated for the

last five consecutive months and ran at a 5% pace in the first eight

months of the year compared to a year ago. With inflation at 2.2%, this has left

room for solid real wage gains to be realized in the province. Job growth so far

this year has been largely concentrated in the construction sector and some

service sector industries, including finance, insurance, real estate, education

services, and public administration.

Ontario —Job markets in Ontario are lagging the national average

but still remain in healthy territory. The goods sector is still in

decline as the agriculture, forestry and manufacturing sectors continue

to shed jobs. Service-sector strength, however, still trumps

the losses in the goods sector. Wage growth decelerated substantially in the

early part of 2007 but has since picked up in the last four months. But, wages are

still dragging on the national average, with Ontario and Quebec being the only

two provinces where wage growth is below the national rate. With inflation

running at a mild 1.6% this year, real wage gains are still being realized but only

by a slim margin.

Quebec — Job growth picked up in the early part of 2007 and the

unemployment rate dropped from 8% last year to a record low of

6.9% in July. The gains so far this year have been concentrated in

the service sector. The tightness evident in Quebec's labour market,

however, has not flowed into wage growth. Like Ontario, wages are growing

at a pace below the national average. Average hourly earnings were up 2%

in the first eight months of the year compared to the same period a year ago,

while the national pace is a full percentage point higher at 3%.

New Brunswick — After a slow start in the first quarter of 2007,

the province's labour markets picked up, reaching a healthy 3.7%

year-over-year pace in August. Its unemployment rate has also

been trending down. Wage growth has speeded up substantially

in the last few months and New Brunswick has the third fastest pace among

Source: Statistics Canada, Canada Mortgage and Housing Corporation, Canadian Real Estate Association, RBC Economics Research

Provincial current economic indicators

Latest month available, year-over-year % change, not seasonally adjusted unless marked S.A.

the provinces this year. The goods sector has led the gains, with

the utilities, construction and manufacturing sectors accounting

for 90% of the job growth in the sector in the first eight months of

the year. The service sector has shed roughly 3,000 jobs during

this period.

Nova Scotia —Labour markets in the province are

tighter than they were last year when it experienced

an outright contraction in jobs. However, this year

there have been consecutive monthly declines in

overall employment since April. The unemployment rate has risen

a full percentage point, reaching 8.9% in August. Wages, however,

are still running at a healthy clip. Employment in the goods sector

has been mixed. Forestry sector employment remains in decline,

while manufacturing employment appears to have stabilized. The

service sector contributed 70% of the job growth in the first eight

months of the year compared to a year ago, but has recently softened

as trade sector employment has weakened.

Prince Edward Island — The support in the Island's

job market so far this year has emanated chiefly

from the service sector. A broad range of industries contributed to

this gain, including finance, insurance and real estate, healthcare

and the accommodation sector. Jobs in the goods sector are down

so far this year, with noted weakness in agriculture and construction.

More declines in construction sector employment are anticipated as

the construction industry continues to wind down after a strong run.

The unemployment rate is just above 10%, one percentage point

below last year's rate, and wage growth is coming in at a 4% pace so

far this year compared to the same period a year ago.

Newfoundland — The unemployment rate appeared

to be on a downward trajectory in the early part of 2007

as job gains picked up — it dropped from its January

high of 15.4% down to a low of 12.9% in May. It has

since ticked up a few notches as job growth has eased but is still

signalling a tighter market than in 2006. Wages are growing at a

healthy clip in line with the nationwide pace and are running at more

than double the rate of inflation, translating into real wage gains.

Healthy wage growth has proved to be a decent support for the

province's retail sector, which is tracking at a 10% pace in 2007 compared

to last year.

Courtesy of RBC Economics

Local Trends in Real Estate

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

Current Mortgage Interest Rates

These are the current interest rates from Invis

Our Best Rates

Terms	Posted Rates	Our Rates
6 MONTHS	6.65%	6.25%
1 YEAR	7.15%	5.60%
2 YEARS	7.30%	5.65%
3 YEARS	7.30%	5.70%
4 YEARS	7.30%	5.85%
5 YEARS	7.19%	5.79%
7 YEARS	7.55%	6.00%
10 YEARS	7.90%	6.15%
Rates are subject to change without notice. *OAC E&OE

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

Lots of Lots for Sale

Lots of Lots for Sale in the USA

U.S. new home sales dropped a larger-than-expected 8.3% in August, to 795,000 units annualized, the lowest level in more than seven years. Although there were rumours of a double-digit decline ahead of the release, the fact that the three prior months were also revised down tempered any "better-than-worst-feared" talk.

New homes available for sale slipped 1.5% to 529,000 units. Although this is down for the fifth consecutive month, relative inventory levels remain elevated because demand has been falling more sharply than supply. Month's supply stood at 8.2, up 0.6 ppts from July and just a notch below March's 8.3 reading, which was the highest in more than 16 years.

The median sale price of a new home is down a steep 7.5% y/y, and even though this is not a great measure of house price deflation, it does support the dismal story that was already painted by Tuesday's S&P/ Case-Shiller home price index.

The Bottom Line: Weak new and existing home sales along with housing starts and building permits point to yet another hefty drag on GDP growth coming from the housing sector during the third quarter, and it shows no signs of letting up anytime soon.

Read about our marketplace

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

How to Become Mortgage Free quicker

You can be mortgage free sooner than you think

Are you feeling weighed down by the years remaining on your mortgage? Worried about when you should lock in your variable rate, or unsure of refinancing with rates on the rise? Getting a good interest rate is crucial, but there's a lot more you can do to ensure that you are mortgage free sooner. Flexibility and options are key - and the advice of an unbiased mortgage professional can help you make the most of these alternatives.

The experts suggest the following:

1. Match your mortgage payments with your pay periods. Not only does it make budgeting easier, but if you have bi-weekly payments you'll be making an extra payment each year (and you won't even feel it!)

2. Shorten your amortization. If you can budget for the higher monthly payments, this will help you build equity faster and take years off your mortgage.

3. Use your pre-payment option. Many people get a mortgage with this feature, but only 3% actually take advantage of it. A few hundred here and there can add up to thousands saved later on.

4. Income increasing? Consider permanently increasing your payments to match. Again, you won't feel the strain, but your equity is increasing and interest decreasing with every extra dollar you put in.

5. Most mortgages allow a lump sum payment in any one calendar year - and if you don't use it, you lose it. Just because you don't have a huge sum to put away doesn't mean it isn't worth it. Even small extra payments could pay big dividends later.

6. Shop around for better terms at renewal. Although it seems easier to just sign the form your bank sends, most people renew at rates higher than what they could have achieved if they had negotiated. Your mortgage professional is not just there for the purchase, but throughout the life of your mortgage.

Read more about becoming mortgage free quicker

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?


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RBC ECONOMICS - Repricing of credit risk "an ongoing process" according to Bank of Canada Governor Dodge

Repricing of credit risk "an ongoing process" according to Bank of Canada Governor Dodge

In a speech to the Canada-U.K. Chamber of Commerce this morning, Bank of Canada Governor Dodge said that the repricing of credit risk is an ongoing process that began the spring of 2007 and accelerated in August as investors became more uncertain about the creditworthiness of their holdings. As a result, "the 'wall of liquidity' evaporated under the summer sun" Governor Dodge stated, and investors moved their holdings into short-term assets, noting that the repricing of risk "may take somewhat longer than in previous periods".

The Governor highlighted the actions of the Bank of Canada has taken to ensure that Canada's money market continued to function. While the overnight market appears to moving "back to normal operations," the Governor acknowledged that "term funding remains somewhat expensive".

He stated that the Bank's actions to provide liquidity "did not in any way signal a change in our monetary policy. In fact, it was a step in maintaining our monetary policy stance by keeping our target for the overnight rate at 4 1/2 per cent, which we judged appropriate for keeping inflation on target over the medium term."

On the current economic outlook, the Governor maintained the view articulated in last week's release that "there are significant upside and downside risks to the inflation outlook" and reaffirmed the view that "the current level of our target for the overnight interest rate – 4-1/2 per cent - is appropriate." On balance, the speech confirms the Bank's steady-as-she-goes stance on monetary policy.

Highlights of the speech

· The re-pricing of credit risk is an ongoing process. Unfortunately, it may take somewhat longer than in previous periods, because of the opacity and legal complexity of so many of these structured products. All of this implies that it's too early to draw any definitive conclusions from the current experience.

· But while the overnight market in Canada is well on its way back to normal operations, this does not mean that all of the problems in money markets have been resolved. Term funding remains somewhat expensive, and the yield spread between bankers' acceptances and treasury bills remains abnormally wide.

· With respect to the market for asset-backed commercial paper, Canada – like other countries – has seen some problems. One specific segment of the Canadian ABCP market – the market for third-party, or non-bank-sponsored, structured finance, asset-backed commercial paper – has had particular problems. This represents roughly one-third of Canada's about $120 billion ABCP market….. Efforts to resolve problems in the market for third-party ABCP are under way. Discussions between investors and liquidity providers – most of whom are international banks – are continuing in Montréal. And I remain hopeful that, over time, we will see useful results.

· the major banks appear to be well placed to deal with the current dislocations. In a joint statement last month, these institutions said that their commitment to support the ABCP market is underpinned by the strength of their financial positions, their confidence in the underlying assets, and their ongoing commitment to provide liquidity for their conduits upon maturity. Further, data published by Canada's Superintendent of Financial Institutions show that our domestic banking sector is well capitalized. At the Bank of Canada, we welcomed this effort to help re-establish well-functioning money markets in Canada.

· Recent developments suggest that the near-term economic prospects for the United States are weaker than earlier expected. It now seems likely that the adjustment in the U.S. housing sector will be more pronounced and more protracted, exacerbated by the dislocations in financial markets. This implies weaker demand for Canadian exports than had been earlier expected. However, economic growth in Canada in the first half of this year turned out to be stronger than we had projected.

· However, there are significant upside and downside risks to the outlook for inflation. On the upside, there is a possibility that household demand in Canada could be stronger than anticipated, while on the downside, the ongoing adjustment in the U.S. housing sector could be more severe and spill over to the U.S. economy more broadly. In addition, there is uncertainty about the extent and duration of the tightening of credit conditions in Canada and, hence, about the tempering effect this will have on the growth of domestic demand.

Courtesy of RBC Economics Research Dawn Desjardins. Senior Economist

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A. Mark Argentino
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Drop in five year fixed mortgage interest rate! Rate sheet updates

Current Mortage interest rates

5 Year Variable 5. 75 % (. 5 0% below prime for the entire term)
5 Year Fully Open Variable .50 % below prime
3 Year Closed 5. 85 %
5 year Closed 5. 60 %
7 Year Closed 5. 78 %
10 Year Closed 5.85%

Sample mortgage payments

Purchase $450000.00

Purchase price	$450000	$450000	$450000	$450000
Down payment	$22500	$45000	$67500	$112500
Payments per week	$465.27	$440.78	$416.29	$367.32
Household income required	$83400	$79500	$75500	$67500

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX

Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
  
• On-Line Real Estate Newsletter sign up
  
• See seasonal housing patterns