Yields Spike. Fixed Rates May Follow.
April 21 2015 Posted by Tracy Bennett
If you’re house hunting or thinking of refinancing, and you don’t have a mortgage rate hold, consider getting one.
Canada’s 5-year bond yield just pierced a 3-month high. That means—barring a big reversal—there’s a good likelihood that fixed rates will ratchet higher. (Bond yields steer fixed mortgage pricing, most of the time.)
- a brightening picture south of the border, including:
- A 10.9% y/y jump in home prices—the most in 7 years
- Consumer confidence at a 5-year high
- U.S. stocks at record highs
- lower perceived global risk (which reduces demand for “safe” government bonds)
- technical-related bond selling.
Call us today to arrange for a pre-approval or renewal rate lock….don’t be disappointed you have missed the low rates!