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RBC Boosts 5-year Rates

RBC-BankThe nation’s largest mortgage lender is lifting some of its fixed rates.

RBC’s “Special Offer” 5-year fixed will rise 20 bps to 3.69%, effective tomorrow.

By contrast, the average deep discounted 5-year rate is now around 3.09-3.19% industry-wide.

RBC’s posted 5-year rate remains unchanged at 5.24%. Posted rates have generally hovered around 5.24% since May.

The bank’s 3-year posted rate is also rising by 20 bps.

These changes follow a 40 basis point jump in the 5-year bond yield, from its lows in July. (Bond yields usually guide fixed-rate mortgage pricing, except during unusual times—like periods of global financial risk.)

Apart from these and other recent rate increases, the next wave of fixed-rate hikes will likely not arrive unless 5-year yields break above the 1.60% mark. This chart will help you follow the bond market, if you’re interested.

Rob McLister, CMT