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Categories for Mortgage Rate Curves

Rate Surveillance: Fixed-Variable Spreads Narrow

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...

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Rates Up. What Now?

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....

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Mortgage Rate Curve

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...

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Mortgage Rate Curve

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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Mortgage Rate Curve

The chart below shows the average best rates for each mortgage term on RateSpy.com. It provides a good sense of rate premium you’ll pay for the security of a fixed rate and/or longer term. Trendsfrom the last 30 days The 5-year fixedis the most-chosenterm in Canada. Its uptake is slowly declining, however, as more Canadians anticipate that low rates will...

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Mortgage Rate Curve

The chart below shows the average best rates for each mortgage term on RateSpy.com. This graph provides a sense of how much of a rate premium you’ll pay for the security of a longer-term and/or fixed rate. Key Takeaways from the last 30 days The most popular term in Canada is still (no surprise) the 5-year fixed. Those rates start...

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Mortgage Rate Curve

The chart below shows the average best rates for each mortgage term on RateSpy.com. This graph provides a sense of how much of a rate premium you’ll pay for the security of a longer-term and/or fixed rate. Key Takeaways The difference (spread) between 5-year fixed and variable rates has shrunk in recent weeks to roughly0.39percentage points. That’s far less than...

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Mortgage Rate Curve – Mar. 5, 2015

The chart below shows the average best rates for each mortgage term on RateSpy.com. This graph provides a sense for how much of a rate premium you’ll pay for the security of a longer-term and/or fixed rate. Key Takeaways: The difference (spread) between 5-year fixed and variable rates remains tight by historical standards at roughly 0.44 percentage points. The long-term...

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Mortgage Rate Curve – Jan. 15, 2015

The chart below shows the average best rates for each mortgage term on RateSpy.com. This graph provides a sense for how much of a rate premium you’ll pay for the security of a longer-term and/or fixed rate. Key Takeaways: The difference (spread) between 5-year fixed and variable rates remains narrow by historical standards at roughly 0.57 percentage points. The long-term...

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Mortgage Rate Curve – Nov. 17, 2014

The chart below shows the average best rates for each mortgage term on RateSpy.com. The graph provides a sense for how much of a rate premium you’ll pay for the security of a longer-term and/or fixed rate. Key Takeaways: The difference (spread) between 5-year fixed and variable rates remains tight by historical standards at roughly 0.55 percentage points. The long-term...

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