Steve_P

It will likely lower mortgage rates but I seriously doubt it will have any lowering effect on house prices.

It hasn't in the past there's no reason to think it will now.

G77

I was thinking more the other way - since cheaper mortgage means people can afford more.......

Lees147

Essentially yes but the reason this is happening is because people are too streched financially already and therefore the cut in interest rates is just so that people don't go bankrupt rather than to get more people to buy.

Rob_999

According to my mortgage broker it won't have major impact on mortgage rates yet - "we're currently paying a premium because of the sub-prime problems in the USA. There is still about $150 billion dollars that has to be written off which will happen this spring. Once the losses are taken the spreads should narrow which would mean lower fixed rates".

geedee

Well, after a Canadian drop in rates, a hold in the UK and not great news about the Canadian economy (new build permits down nearly 3%), the pound is still only at 1.977.

It seems the hope of breaking back through 2 is a distant one.

If it can't do better than that when all has been in the Pound's favour the last couple of days, further drops don't look unlikely.

cneldred

Oil at $105 a barrel!! That doesn't help.

Chris

geedee

Thanks Chris. It's always "something"

cneldred

indeed it is. The situation between Venezuela and Columbia is being blamed for the latest move up. We finally sell our house in about 4 to 6 weeks, praying for a pop above 2 about then.

Chris

geedee

Selling in the UK or here (Canada)?

I'm still renting and would love to buy, but not at this exchange rate. Point blank refuse (probably cutting off my nose to spite my face, but there you go!!)

cneldred

selling in the UK. We close on our house here early July, just praying for a recovery.

Chris

geedee

Fingers crossed and good luck!

I notice it's crept up to just over 1.98....

G77

Seeing as the £ to US $ is pretty good - would there be any merit in changing an amount of sterling into US $ and wait for it to recover against the loonie?

cneldred

personally i think the US economy is screwed for at least the next 10 years. The last currency in the world i would want my life savings in is US$. I am fed up of second guessing things and getting it wrong, turned down 3 offers on our house last year, as i thought we would get better. We have just accepted 15 grand under the lowest of those. As soon as the money is in the bank we will change it into CAD$ and start sleeping properly again.

Chris

G77

I don't have that much that makes it worth getting too upset about, but 2.3:1 would have been nicer than 1.98:1

cneldred

i would donate my left b*****k for anything above 2.20

Chris