Mortgage Update: May 29, 2009

"Interesting—this week we saw the first move of mortgage rate in the opposite direction. A couple of mid-size lenders increased slightly their 5-year closed term rate. From talking to some insiders in the industry, it is because of the increased bond yield, which is closely related to the cost of borrowing for the lenders."

"Well, if you see one cockroach, be sure more will follow. Rising stock markets, better than expected economic news and low inflation all points to that direction -- higher mortgage rates down the road."

"Still the best 5-year term is 3.54% and the best variable rate is Prime + 0.60%, but it remains to be seen how long these numbers will hold."

With kind regards,

Vasko DeLev, AMP
Accredited Mortgage Professional
License # M08000574

Verico Capital Mortgages Inc.
106 - 18 Deakin St, Ottawa ON K2E 8B7
Direct Line: 613-882-7603
Email: vasko@CapitalMortgages.com