Editor's Note: Monday Morning Interest Rate Update appears weekly on this blog - check back every Mon for analysis that is always ahead of the pack.
This post will be shorter than normal because, instead of blogging yesterday, I participated in the 121st running of the 30k Around the Bay Road Race in Hamilton, Ontario. This is the fifth year in a row that I have run this race, and with good weather and cheering crowds I managed to run a personal best. (My wife keeps reminding me that an update to the running section of this blog is long overdue!)
Five-year Government of Canada (GoC) bond yields rose by eight basis points last week, closing at 0.80% on Friday. Five-year fixed-rate mortgages are offered in the 2.54% to 2.64% range, and five-year fixed-rate pre-approvals are available at rates as low as 2.69%.
Five-year variable-rate mortgages are available in the prime minus 0.65% to prime minus 0.80% range, depending on the terms and conditions that are important to you.
The Bottom Line: GoC bond yields continue to hover near record lows and the Bank of Canada remains cautious about our economic outlook. Both factors suggest that our fixed and variable rates will stay low for the foreseeable future.
David Larock is an independent mortgage planner and industry insider specializing in helping clients purchase, refinance or renew their mortgages. David's posts appear weekly on this blog, Move Smartly, and on his own blog: integratedmortgageplanners.com/blog Email Dave