5-year bond yields have jumped to 2.27%–up 40 basis points in the last 30 days.  As a result, mortgage funding costs are spiking (fixed mortgage rates are generally linked to bond yields).

A few smaller lenders have already raised, or plan to raise, their 5-year fixed rates.  As reported a few weeks ago, this may be a precursor to further, more wide-scale, rate increases.
5-year_bond_yields-20090521

If you’re a homeowner considering refinancing into a fixed rate, now may be the time to act.

If you’re a broker floating a fixed rate for a client, you may want to consider locking it in.

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Attribution: Special thanks to the Bank of Canada for the data used in this chart.

The Mandatory Disclaimer:  Accurately and consistently forecasting interest rates long-term is virtually impossible. This is not a prediction or recommendation.  Market conditions can change at any time. Contact a mortgage planner for recommendations suitable to your particular circumstances.