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5-Year Fixed Rates Drop Again

It’s almost becoming a weekly affair. RBC has cut its posted 5-year fixed rate again, to 5.39%.

That makes four 10-basis-point rate drops in the last month. 

RBC’s latest reduction took effect on Saturday. It was one of those stealth cuts to posted rates, with no press release.  (Although RBC did issue a release about lowering its discount rates.) 

Whatever the case, rates sure do fall slower than they climb.  Back in March we saw a 60 bps hike in one day. As of late, borrowers have had to wait patiently while fixed rates trickle lower inch by inch.

5-year-yields-vs-5-year-Fixed-RatesTheoretically, there’s still a little room for fixed rates to fall further. Despite 40 basis points of posted-rate cuts in the last month, spreads are healthy enough to warrant more discounting. But, keep an eye on bond yields.  If yields rebound higher from the consolidation* they’ve been forming, the party may end…for now.


5-year bond yields have been trying to put in a bottom in the 2.15% to 2.20% range for the past 12 days.