5-year Yields Drift Lower

5-year bond yields are slowly dropping.  The yield is now 2.54%.  That’s down from the 7-month closing high of 2.81%, set on June 10.

5-year yields are a key driver of fixed mortgage rates.  Typically, when yields drop, 5-year mortgage rates drop.  In the past few days we’ve seen a handful of lenders lower rates, but just 0.05% or so.

The Big 5 last raised mortgage rates on June 9, when the 5-year yield was 2.68%.

Comments

[Jerry Hung]

For anyone interested in the NEWEST 5-year bond rate, see this link
http://www.bloomberg.com/apps/quote?ticker=GCAN5YR:IND

That should provide an incentive for banks to not raise anymore, and maybe offer bigger discount

Go for 4-year fixed mortgage if you can vs 5-year, very BIG difference

[Canadian Mortgage]

Hi Jerry,

Thanks. The story above includes the same bond link.

-rob

[Sagun Goel]

How to get different bond yeilds like 4 year or 1 year

[williama]

Check out this link:
http://www.tmxmoney.com/HttpController?GetPage=BondsAndRates&Language=en

[banker in a ivory tower]

If your looking for historical charts for bond yields and daily bond rate closings etc, the bank of canada website is quite good. It just won't give you real time bond rates.

http://www.bankofcanada.ca/en/rates/bonds.html

[MortgageHunter]

Just got email from INGDirect that they are lowering their 5yr fixed to 3.79.

[Ryan]

Why did they email you? Are you a broker or was it in regards to an application? I am up in the air right now. I have a pre-approval of 4 year at 3.84% or I can continue my prime -0.55% until December. If rates are dropping again, I may go with the variable and wait to lock in. I am with PC Financial currently.

[C]

Seriously? ING Direct website is still showing 4.49%.

[MortgageHunter]

I signed up for email notification. I am in the market so trying to keep in the loop. Here is the quote "Great News! We've lowered our mortgage rates again. Our 5 year fixed rate mortgage is even lower, making it possible for you to get mortgage free faster, pay less or both! Our 5-year fixed rate mortgage is now 3.79%. That's 1.46% lower than the average of the 5-year fixed rates posted by the Big Banks. In addition, our 5 year variable rate mortgage is now 2.85%. That's ING Prime plus 0.60%!"

[Ryan]

Thanks for the great info! You may have helped me greatly. I have signed up for their notifications as well. Will see if I get the same email. :) Thanks!

[Dave]

I think that 3.79% announcement is old news. IMO there is no way ING would lower to that given the current market.

[C]

Looking at the bond rates:

http://www.bloomberg.com/apps/quote?ticker=GCAN5YR:IND

It's down around 1.5% today.

[Ryan]

MortgageHunter... Can you confirm if that was a current email notification? I just got off the phone with ING and they don't know anything about it. Thanks!

[MortgageHunter]

Unless ING screw up their email, I received at noon today. Here is my email header:

Received: by 10.150.195.13 with SMTP id s13cs37029ybf;
Thu, 25 Jun 2009 12:01:20 -0700 (PDT)
Received: by 10.100.231.15 with SMTP id d15mr3772231anh.77.1245956480085;
Thu, 25 Jun 2009 12:01:20 -0700 (PDT)
Return-Path:
Received: from mail.saveyourmoney.ingdirect.ca (mail.saveyourmoney.ingdirect.ca [66.241.134.11])
by mx.google.com with ESMTP id 38si3654941yxe.74.2009.06.25.12.01.19;
Thu, 25 Jun 2009 12:01:20 -0700 (PDT)

[Mike]

ING email is wrong. I got it too and I called them on it.

[Ryan]

That was a big oops on their part then. Unless the rates update tonight?

[Ryan]

First Calgary now has 3.99% on a 5-year fixed.

https://www.1stcalgary.com/Personal/ProductsServices/MortgageSolutions/FixedRateMTGPromo/

[Canadian Mortgage]

Thanks for the link Ryan!

[Becky H..]

Hi Rob

I love your little Twitter updates!

They are so cute and informative. Haha.

B :)

[MortgageHunter]

What about this:

https://www.comsavings.com/Personal/ProductsAndServices/Borrowing/Mortgages/Promotion/

They have 3.85 for 5yr fixed. I have NOT confirmed by calling them up.

[Ryan]

I assume they will only give mortgages in Vancouver/Victoria where their branches are located.

[Beth]

I have learned so much from this site. I checked the 3.85 at Commsavings.com and have placed a call to chat with someone tomorrow.
Please keep up the great tips!

[Al]

Rates are going to come down again. That was a complete headfake when they briefly went up for a few weeks there. Mortgage Brokers and Banks were falling over themselves to 'advise' potential buyers to jump on the rates now as they could only go up. Sorry, appears they can very well still go down and if this recession does indeed continue into a depression, they are going to be this low (or lower) for several years to come.

[TheTruth]

Wow Al. You really seem to know where rates are going. I bet you trade bond futures and make millions with your insights?

Anyways, thanks for the great advice. While you're at it, can you predict high tide in the Bay of Fundy next January 30? I have to go collect seashells that day and don't want to drown.

Truth

[Dan]

Rob,

Can you clear up some of the rumours on ING please?

Always counting on CMT to clear up fact from fiction!

Thanks

[Adrian]

Surprised with ING's blip. They're usually very good. However, this news didn't spillover on the brokers channel!

[Adrian]

As Rob mentioned on Twitter, ING's five year is still 4.49% as of right now!

[Adrian]

Congrats on the Twitter updates! They are very good and informative!

[C]

Bond rates is still dropping today, will this affect the fixed rate mortgage rate at all?

[Canadian Mortgage]

Hi folks,

Dan: As Adrian noted, we posted a news blurb on Twitter (see left side of CMT) that ING accidentally sent out the wrong rate in their email. Their 5-year is still currently 4.49%.

Adrian: Thanks a bunch. Tweeting is kind of fun. I can see why it has taken off.

C: 5-year yields are down to 2.50%. They're dropping slowly due to a lack of any fresh news catalysts. A few lenders have reduced their rates by 0.05% in the last 24 hours...

Cheers,
-rob

[Al]

TheTruth, you obviously missed my point. I was trying to show that the so-called 'experts' cannot predict the future and yet they all were telling us that rates were about to shoot up and encouraging people to jump in before they rise much further. My point is that with 5 and 10 year Bank of Canada Bond yields beginning to drop again this past week or so, it is not simply a one way street and that mortgage rates can still fall as well as rise. You can by all means continue to collect your seashells at Fundy Bay whenever you choose. Not sure mortgage rates have much affect on tides but I could be mistaken.

[Ryan]

www.______.ca is advertising a 3.71% 5 year mortgage.

[Edited. Please feel free to post any verifiable lender quotes. However, we ask that broker quotes are not posted. Otherwise the site would be overrun with spam. As a side note, the rate on the site mentioned has not been updated since May 11 and is likely invalid. Thanks for your understanding. - Elizabeth]