Mortgage and Real estate highligths.

Too much media attention and not enough facts. As an active mortgage broker and real estate office manager I just do noit know why the media is scaring people by saying the market is getting to a low. This is wrong.

The banks are there for one group…their own stakeholders and they are out for their profit. This is now true and it always has been true.

Just read the following article I found:

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Analysts are suggesting brokers will see little in the way of a rate war for the rest of 2012 as the big banks look to protect interest margins in a slowing market.

The analysis comes a day before the first of the Big Five trod out earnings reports for the third quarter on Tuesday. The expectation is those numbers will restate the case for more conservative mortgage pricing as the growth in new mortgages creeps forward.

“I expect lending to continue to slow down, especially on the mortgage side, as we move into the latter half of 2012 and into 2013,” Tom Lewandowski, an analyst at Edward Jones, told reporters. “That just creates more of a focus on expenses, given the interest rate environment that we’re operating in currently.”

Interest margin are continuing to shrink as the books of all lenders begins to reflect the shift to lower interest rate mortgages. That means that even outside the vagaries of the bond market banks are taking in less mortgage interest even as the rates they offer depositors remains stable or increases in some cases.

The phenomenon suggests lenders are more likely to hold their mortgage rates or increase them as RBC and others did last week.

********************************************************************************************************Networth Mortgage Centre is offer a 5 year fixed mortgage for a low 2.80% for the clients looking to renew, refinance, or just take out some equity. Then for the clients looking to buy their next home we can offer 2.60% for a 5 year fixed mortgage when you work with one of our Approved Realtor partners.

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