We’ve seen a dramatic rise in the lending rates on mortgages over the past month. In that time, there has been almost a full-percentage point gain. We haven’t seen that type of movement for a very long time.
How is this affecting real estate in Vancouver? So far, there hasn’t been much of an affect that I’ve noticed on the market. Activity is as rabid as ever. However, given that last month saw the average house price in the city reach a new high, as well as a traditional summer slowdown coming, I wouldn’t be surprised to see the new mortgage rates temper price gains a little bit.
Predicting the future in the Vancouver real estate market is a very tough job, though. Many have been predicting an adjustment for years now and they continue to be proved wrong.
These rises in mortgage rates bring home an important point. It’s critical to get your mortgage pre-approved when you begin the homebuying process. Have the lender secure your interest rate (this can often be done for 90 – 120 day periods) while you look for your new home. If rates rise before you purchase your home, you’ll get the benefit of the lower interest rate you secured weeks or months earlier. If they drop, you can pick up the new rate.
If you need help finding the right lender, bank or mortgage broker I would be happy to help. I have numerous contacts that will be able to help you find the right mortgage at the right price.
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