For the second time in nine days, RBC has led the banks in dropping fixed rates.
This time, all of RBC’s advertised fixed rates are falling 0.10%, effective tomorrow. The other banks should be right behind.
RBC’s benchmark posted rate is dropping to 5.49%, the lowest since March. Come June 6, that 5.49% will be the new qualifying rate for insured mortgages less than five years. (Monday’s qualifying rate will be 5.59%).
RBC’s “special offer” 5-year rate is now 4.34%, but actual street rates are below 4.00% for qualified borrowers.
Today’s rate move coincides with plunging bond yields (bond yields guide fixed-rate mortgage pricing). The rate on the 5-year government bond sank to 2.30% this morning, a new 6-month low.
Variable rates are unchanged.
Rob McLister, CMT