Canada blew away economists’ job growth estimates this morning. That’s driven 5-year yields to a new 8-month high.
This probably won’t have much impact on variable rates in the short-term, but fixed rates are now under pressure. Gross spreads are down to 100 basis points or less on deeply-discounted 5-year fixed rates (120+ is more “normal”). That means we’ll likely see some or most lenders lift rates next week.
If you’re contemplating a fixed rate on a home purchase or refinance, consider securing that rate soon to be safe.
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Last modified: April 25, 2014
Agree this could raise fixed rates and in turn affect mortgages.
Rob could you or anyone else please comment if Scotia, BMO and others have clarified their position if they will match RBC on offering 35 year amort for conventional mortgages after March 17?
I thought I heard that the unemployment numbers went up as more people were back in the work force looking for employemnt…
(Sort of good news bad news)
Job gains are more important than the unemployment rate.