Interest rates

[Captain Awesome]

What are short term predictions for mortgage rates?

We have 1 year left on our current mortgage and will have to refinance next May. At the same time the interest rates right now look very appealing - we currently pay 3.89 and I can find 2.89 with the same terms. Should I wait till mortgage is up or should refinance now? Refinancing right now would trigger some sort of penalty, I'm sure.

Variable rate is even more attractive at 2.30% but I don't know how I feel about variable.

[kgcayenne]

Mine us up for renewal, and the current offer is 2.59% 5yr.

Shop around, the offers will get better.

[Smurf]

I remember having a real deal at 18%. Almost wish I needed a mortgage.

[Captain Awesome]

I remember having a real deal at 18%.

I can't imagine paying anywhere this much. We'd go broke, probably.

[grammafreddy]

I remember having a real deal at 18%. Almost wish I needed a mortgage.

I remember those days.

[Smurf]

If we ever see rates rise like that again or even close to it I believe a lot of people will join you CA. If I remember right rates did go above 20% but don't quote me. If you just paid regular payments there wasn't much going to your balance.

[NAB]

I remember having a real deal at 18%.

I can't imagine paying anywhere this much. We'd go broke, probably.

Many did actually, or a very least had to give up their homes or businesses (or both). But it had the positive impact of teaching people to lower their expectations, spending, and attitudes toward exposing themselves to excessive debt.

But the lessons learned didn't rub off on so many in the next generation that they are now poised to experience even worse.

Nab

[NAB]

Sadly, those who did not learn the lessons surrounding the cycle of interest rates, debt and inflation (or chose to ignore them) have not only screwed themselves long term, but in the process screwed those who learned them well (thanks to the Economics challenged Trudeau Senior) and adjusted accordingly.

Many of them now even rant about how great Paul Martin was as Minister of Finance because of his "cuts" during the 90's (he of course was a total flop as PM later), while at the same time failing to acknowledge that it was his party (under Trudeau) that launched Canada (as well as its provinces) into an irreversible river of mounting debt in the first place.

Long term pain in exchange for short term gain is more entrenched now than it ever was.

Nab

[Glacier]

What are short term predictions for mortgage rates?

We have 1 year left on our current mortgage and will have to refinance next May. At the same time the interest rates right now look very appealing - we currently pay 3.89 and I can find 2.89 with the same terms. Should I wait till mortgage is up or should refinance now? Refinancing right now would trigger some sort of penalty, I'm sure.

Variable rate is even more attractive at 2.30% but I don't know how I feel about variable.

My philosophy is that when every expert is in agreement about something, the opposite is most likely true. This situation is no different as no financial expert got saw this coming. Bank of Canada rate is now at 0.75%, which means my variable mortgage will be dropping down close to the 2% mark.

[kgcayenne]

As will mine and a few others I know.

Am I 'off' in thinking that they are hoping those who can will engage in greater consumerism? It's a grave mistake that our economy is so much more dependent on consumerism than it had been in the past.