People had a sense it was coming.  Fixed rates are now “officially” on the way up. 

RBC just announced it is raising its 5- to 10-year fixed rates (RBC’s Release).  It is the first increase in the posted 5-year rate in eight months, and it’s thanks to a big spike in bond yields.

5-Year-Fixed-RatesRBC’s new 5-year posted rate is 5.45%, up 0.20%.  The rest of the Big 5 will likely follow at some point.

Its “special offer” fixed rate (an industry benchmark for discounted 5-year mortgages) is now 4.15%. 

We’ve also seen several other smaller lenders increasing fixed rates, including some of the leading no-frills lenders.

Will this lead to a longer-term uptrend in fixed rates?  We’ll know in 6-12 months.

For now, the good news is that we’re still just 0.20% above the lowest fixed rates in history.  Moreover, if you want to lock in near the bottom, there are still some lenders who haven’t raised yet.