The big 1% jump in rates in early April 2010 have all most entirely been wiped away. Fixed rate "specials" are being offered at 3.69% for a 5 year fixed with most lenders allowing 3.89% for rate holds and most deals.
Continued concerns about the global economic recovery have investors stashing money in the safety of Canadian bonds. While it is hard to say how long rates will stay in this range, these lower rates should help boost purchases in the upcoming fall real estate market.
An increase in inventory and slow sales have instilled a higher level of motivation in sellers than we have seen for a while. Combined with low rates should see buyers getting off the side lines and back into the market. While I personally don't expect further runaway prices, I do believe we will find ourselves in a balanced market for much of the fall with sales dropping off late fall into Nov/Dec.
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