CMT Team·Mortgage Rate Trends·March 15, 2011RBC Drops Fixed Rates With bond yields falling more than 30 basis points in two weeks, RBC is the first to make a move. The nation’s largest mortgage lender is cutting its 5-year fixed rates by 10 bps. RBC’s posted 5-year fixed rate will be 5.34% effective tomorrow. Its “special offer” rate is moving to 4.19%. (Actual market rates today are in the 3.89% range for well-qualified borrowers.) The other banks shouldn’t be too far behind. The banks last hiked fixed rates on Feb. 7 when the 5-year government bond yield was 2.71%. Today it’s down to 2.52%. (5-year fixed rates track bond yields.) RBC also cut its 4-, 7- and 10-year fixed rates (see the release). With short rates falling precipitously, we’re surprised RBC didn’t lower its 1- to 3-year rates at the same time. Like news like this?Join our CMT Updates list and get the latest news as it happens. Unsubscribe anytime. SUBSCRIBE! Thank you for subscribing. One more step: Please confirm your subscription via the email sent to you.