The Bank of Canada announced today that it will not raise its overnight rate, keeping the Prime lending rate at 3%. The Bank feels that the global recovery is slowing, predicting  a weaker than expected recovery in the US.  The Bank predicts the economic recovery in Canada to be more gradual than previously projected. Inflation in Canada is also below the Bank of Canada's projections.

“Calgary’s housing market has been undergoing a measured correction over the past 4 to 5 months. Sales are trending lower as a result of a decrease in first time home buyers entering the market and a decline in pent up demand following a strong post-recession recovery,” says Diane Scott, president of CREB®. “There has been much talk recently about the potential for a housing bubble in Canada--but the economic fundamentals at play make this scenario unlikely for Calgary. ... Full Article...

The summer cool down in Calgary’s housing market continued in the month of July, according to figures released today by the Calgary Real Estate Board (CREB®). The number of single family homes sold in July 2010 in the city of Calgary was down 42 per cent from the same time a year ago, and condominium sales saw a decrease of 44 per cent from the same time a year ago. July 2010 saw 915 single family homes sold in the city of Calgary. This is a decrease of 14 per cent from 1,061 sales in Jun ... Full Article...

“We are seeing continued moderation in Calgary’s home sales in the face of higher mortgage rates, increased inventory levels and a decreasing number of first-time homebuyers entering the market,” says Diane Scott, president of CREB®. “Our sales trends in June reflect much of what we saw in May. Changes to mortgage rules meant a good portion of homebuyers wanted to get in before the new regulations took effect in April. This, along with rising interest rates on the horizo ... Full Article...

For most people, buying their first home will be the single biggest investment of their lives.  Here are some mistakes to avoid in order help make this once in a lifetime experience enjoyable and memorable for all the right reasons. From Investopedia.com, the 10 worst first time home buyer mistakes are: Not knowing what you can afford. There's no point in falling in love with that dream home that will never be a reality. Skipping mortgage qualification. You should *really* know what you can a ... Full Article...

Today the Bank of Canada announced that it will raise its rate by 0.25%.  Lending institutions are, thus, expected to increase their prime lending rates to 2.75%.  The BOC is making a strong statement on the strength of the Canadian economy with this rate rise, although they were down beat in their statement and have reduced their economic forecast slightly. Variable rate mortgages will increase, but the affect on fixed rates is currently unclear as bond markets are still rallying. The Bank of ... Full Article...