Bond traders have put the Japan disaster in the rear-view mirror…for now anyway.
That, coupled with falling U.S. treasuries and a positive purchasing manager survey, pushed 5-year yields to an 11-month high today.
With the mortgage market taking its cues from bond yields, lenders have been ratcheting up fixed mortgage rates all week.
We’ll see how things shake out in the next few days but it looks like discounted 5-year fixed rates will settle around the 4% area.
There are still lenders who haven’t raised their rates yet. In B.C., for example, a few brokers and credit unions are still quoting 3.64%-3.65%, which is fantastic (relatively speaking) for full-featured five year terms.
In many other provinces you can still find 5-year fixed rates as low as 3.79% (low-frills) to 3.89% (full-featured).
The odds are good that lenders will bump those rates higher any day now.
Rob McLister, CMT
