All it takes to derail an uptrend in mortgage rates is one little global crisis. And that’s potentially what we’ve got. Canada’s 5-year bond yield—which drives fixed mortgage rates—has plunged. As of this writing, it’s down almost 30 basis points from its high two Fridays ago. This latest nosedive is courtesy of shoot-first-ask-questions-later AAA bond-buying. (Rates move inversely to bond...
Not exactly. One month after the mother of all mortgage rule changes, the wheels are still turning in Canada’s real estate and mortgage market. They’re just turning slower. But make no mistake, OSFI’s mortgage stress test has changed the landscape—for both borrowers and lenders. Here’s how: Fewer Mortgages Our best anecdotal guesstimate after speaking to a sampling of federally regulated...
Months of Wasted Fed-Speak Summer Fed hikes are dead. But not before the economy was misread, leaving many borrowers mislead — wishing the Fed left its rate-hike calls unsaid. The U.S. Federal Reserve is having trouble seeing through the economic mist and, as this little ditty conveys, it’s confusing the heckout of borrowers. Amid its ongoing rate-hike forecastscomes last Friday’s...
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