As I’ve discussed in previous posts, fixed rate mortgages are tied in closely to the bond yield (or, in other words, the rate of return on the bond.) The 5 year bond yield was up 0.21% yesterday which is the biggest one day jump since February. It is currently at 2.58%. Four weeks ago, the bond yield was at 2.01%. This all happened on a day when the TSX dropped by 143.76 points. (Typically, when the stock market goes down, the bond yield does too.)
What does this mean to you?
Fixed rate mortgages are going to be going back up as soon as tomorrow with some of the lenders out there. If you are thinking about getting a pre-approval or a rate hold, contact me as soon as possible so you can cash in on the huge savings that will still be available for the short term.
For those of you that like graphs, here you go!
