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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (21432)	11/6/2004 11:28:28 AM
From: Square_Dealings	Read Replies (1) \| Respond to of 110194

Are you thinking about converting to a fixed rate now? I just dont get why the interest in variable rate mortgages here with interest rates so low. I remember the first house I bought the interest rate was 14.75%. So to me locking in anywhere around 5 or 6% seems quite reasonable. M

To: mishedlo who wrote (21432)	11/7/2004 7:10:59 PM
From: Cogito Ergo Sum	Respond to of 110194

garthturner.com So, why do most Canadians opt to pay more interest on their mortgages than they have to? According to the BMO poll, it's because the majority of us are afraid that interest rates will rise in the future. Younger people, especially, have this fear - with 40% of them thinking that rate increases will seriously mess with their financial futures. And what are these fears based on? Apparently, precious little. High interest rates - over 10% - have not been with us for more than a decade. Seriously high rates - in the 20% range - have not existed for almost a quarter of a century. All the economists I hang with are signing from the same page - rates could be 1.5% to 2% higher than they are today within the next one-and-a-half or two years. And that's it. Finito. After all, inflation is running at less than 2% and there are no serious predictions the cost of living is about to break out. Rampant technological advance is actually making TVs, computers, cars and most other manufactured things cheaper every year. Even with oil above $50 US a barrel - which has never happened before - nobody is moping about inflation, and central bankers are not scrambling to jack up lending costs to confront it.