CMT Team·Mortgage Rate Trends·March 26, 2012RBC Drains the Punch Bowl (Somewhat) The traditional #1 pacesetter in mortgage rates is slowing the rate party. RBC is raising three core rates, including its: Posted 5-year fixed which rises 20 bps to 5.44% Posted variable which rises 10 bps to prime + 0.20% 4-year fixed special which rises 50 bps to 3.49% These changes take effect Thursday, March 29. And that date is not coincidental. It’s the day after BMO’s 2.99% 5-year rate ends. It’s also around the time when various competitors’ rate offers expire. Barring a material drop in bond yields, RBC’s move could motivate other lenders to lift their own fixed rates. It might also create a sense of urgency in borrowers to lock into long-term mortgages. That’s a side effect lenders would welcome. As long as the 5-year yield keeps under 1.75%, however, there should be a few lenders left in the low 3% range on 5-year mortgages. Rob McLister, CMT 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.