January 20, 2009
Mortgage news report by Vancouver Home Mortgage:
The Bank of Canada has trimmed it’s overnight target rate by 1/2%. That puts it at 1.00%, an all-time low.
OTTAWA – The Bank of Canada today announced that it is lowering its target for the overnight rate by one-half of a percentage point to 1 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 1 1/4 per cent.
The outlook for the global economy has deteriorated since the Bank’s December interest rate announcement, with the intensifying financial crisis spilling over into real economic activity. Heightened uncertainty is undermining business and household confidence worldwide and further eroding domestic demand. Major advanced economies, including Canada’s, are now in recession and emerging-market economies are increasingly affected. Energy prices have fallen as a result of substantially weaker global demand.
BMO, RBC, TD, CIBC, and Scotia Bank followed the rate cut in reducing their prime rates to 3.00% as well. This rate reduction will be be applauded by borrowers.
The Bank of Canada has now cut rates by a total of 3.50% in the last 13 months. The Bank’s next scheduled interest rate announcement is March 3.
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January 10, 2009
A housing news article collection by Vancouver Home Mortgage:
Feds could make things worse, some worry
Matt Carter, Inman News
NEW YORK — The ongoing credit crunch and misfiring economy leave little reason to expect a dramatic turnaround in housing in 2009 — regardless of steps the government is expected to take to head off a depression, a panel of industry experts said Wednesday during a “Bulls vs. Bears” session at the Inman Real Estate Connect conference.
Home prices remain unaffordable in many markets, and with unemployment headed up, it’s not realistic to expect lower interest rates on conforming loans will be enough to boost home sales. Read more
January 10, 2009
A Vancouver mortgage news article collection by Vancouver Home Mortgage: Jan 08, 2009
The federal banking regulator has issued a public warning about Sovereign Trust, a Surrey-based firm that is offering to bail out mortgage-distressed homeowners.
The Office of the Superintendent of Financial Institutions said Sovereign Trust claims to have obtained a bank charter from the Tuscarora Nation in New York state, but is not authorized by any federal, state or provincial authority.
It also said the B.C. Financial Institutions Commission, which regulates trust companies in B.C., is “about to issue a cease-and-desist order” against the firm. Read more