Mega-lender RBC announced today that it is raising 2- to 5-year fixed rates by 10 basis points and variable rates by 15 bps. (A basis point is 1/100th of a percentage point.) Is this a practical joke? RBC is lifting mortgage rates despite 5-year bond yields nearing four-month lows? That’s what many may be asking, but this is no joke....
Here are five things to know about Wednesday’s1/4% U.S. rate hike: It’s over and done with, and it’s about time. Talking heads haveyacked about the start of Fed tighteningfor years now. Meanwhile, the big event finally happened yesterdayand bond yields (which guidefixed mortgage rates) barely moved. Yes, the Fed’s actionscould push up Canadian long-term rates somewhat,out ofsympathy alone. But ultimately...
As we turn the page on 2015, get ready for a host of new mortgage trends inthe next 12 months.We’ll seenew down payment rules, moretalk of negative interest rates, and surprising moves withbond yields. Analysts are already making their predictions on how mortgage shoppers will be affected.Here’s a glimpse of what they’re saying now: On Higher Down Payments Lastweek the...
The latest mortgage rate intel… Variable rates. The fix is in?: Variable rates have gone vertical, ramping up 25-35 basis points in a matter of weeks. It seems like every 6-7dayswe’re hearing banks cut discounts from prime by another 5 bps or so. This week wasno exception. Sure, the banks have faced an array of funding cost pressures, but nothing...
The Spy’slatestmortgage rate intel… Fixed Rates 5-year fixed rates are up 15-20 basis points in the last 60 days (ouch). A basis point, or bps, is 1/100th of a percentage point. Fixed rates track swap rates (and bond yields, but swap rates are a better proxy if you have the data). 5-year swap rates shot up withU.S. Treasury yields a...
Those of you shopping for a mortgage can be forgiven forcursing the Federal Reserve.The U.S. Fed is hinting that December will mark its first rate hike in nine years. Most interest rate traders are thinking it’s a done deal, which in turn is pushing upCanadian mortgage rates. Have a look at what Canada’s 5-year bonds have been up to lately....
In recentweeks, lenders’ funding costs for variable-rate mortgageshave jumped up to one-tenth of a percentage point. That’slargely due to higher-perceived credit risk in the overall financial markets. Being the profit-seeking enterprises they are, lenders have passed alongthat bump-up in costs to new borrowers.That means you’ll now pay roughlyprime — 0.75% to prime — 0.85% for the most competitive variable ratesin...
Interest rate projectionsare always a moving target so you never want to rely on them. But it’s nonetheless notablewhen forecasts from allmajor banks plunge at once. That’s what happenedrecently, after the Bank of Canada (BoC) unexpectedly chopped rates by 1/4% on July 15. Prior to that rate announcement, Canada’s Big 5banks all sawCanada’s key rate climbingto 0.75% by the end...
Variable mortgage rates are under some pressure.A half-dozen lenders, including some major banks and large non-bank lenders, have shrunk their variable-rate discounts by0.10 to 0.15 percentage points in the last few days. Their going rate is now prime – 0.50%. Lenders blame it ona combination of: Shrinking mortgage spreads (Spreadrefers to the difference between whatalender lends at and its cost...
Lenders’ funding costs in the fixed-rate market have been trending up for two weeks. Yetstill,we’ve seen a small dip in the best 5-year fixed rates.Variable rates have beenmostly unchanged. For risk-tolerant borrowers: 2-year terms under 2.00% provide an excellent combination of refinance flexibility and up-front rate savings. They’re also appealing for those who want to enjoy today’s historically low rates...
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