Many big lenders are now offering 5-year fixed rates at just under 5.00%. In fact, 4.99% seems to be a pretty popular number nowadays.
By contrast, most 5-year variables are still at prime + 1.00% (or 4.50%).
There are exceptions of course. For example, there are certain deeply discounted fixed rates out there that we haven’t seen since May 2007.
This drop in fixed rates follows a steep fall in bond yields, which are down considerably in the last month or two. The 5-year bond closed today at just 2.11%–another multi-decade low.
If you’re hunting for a fixed rate, find a good mortgage planner to do the legwork. Not only is it free, but most brokers have access to unpublished rate specials you won’t find elsewhere. Just make sure to find a planner who shops all lenders–including each of the big 5 banks. A few of the big banks are currently on a market-share kick and have good promotions running.