When bond yields go up, fixed rates often follow. That’s because fixed-rate mortgages are financed in the credit market.
In the last 10 days, bond yields have jumped almost 1/4%. It’s no surprise then that the big banks are now hiking their fixed rates by up to 1/4%.
The talk among economists now is that the Bank of Canada won’t be lowering rates anytime soon. In fact, our economy looks quite robust and some “experts” speculate that fixed rates could move up again before long.
Sidebar: It’s always funny to see the big banks advertise “special offer” rates (as in the link above). Their special offers are typically far above the rates accessible to mortgage planners. It makes us wonder the same thing every time: What’s so special?
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