Mortgage Rate News

Short Terms Get More Love

The fun thing about running a rate site is that you see lots of interesting data, like the rates that consumers click on the most. In reviewing hundreds of thousands of RateSpy clicks this past year, some noteworthy trends have emerged. Here’s what our latest internal analytics reveal… ******** The 5-year fixed rate, typically a fan favourite, has lost lustre these past 12 months. Through February 2017, 5-fixeds have garnered...

Where Do Rates Go From Here?

Fixed and variable rates have taken the fork in the road, each in a different direction. 5-year fixed mortgage rates rates headed north at the end of last year. They’re hitched to bond yields, which soared when markets got spooked by the threat of Trumpenomics—i.e., inflation and higher borrowing demand. Variable rates have swung the other direction thanks mainly to fatter discounts on insured mortgages....

Mortgage Rule Backlash & Wider Fixed-Variable Spreads: RateSpy TV

This week on RateSpy TV: Rate Impact from the Latest Mortgage Rules: Federal MPs have been interrogating government officials over their new mortgage policies. We dig into how the controversy affects your rate. Fixed and Variable Rates Diverge: Like the song goes, “you gotta keep ’em separated.” But are spreads now wide enough for you to float your mortgage? The Spy breaks it down. Rate Surveillance: Market...

Fixed or Variable Rate Mortgage? The Decision Checklist

Almost every mortgage shopper has the same question at some point, especially when rates are surging: “Should I Lock in My Mortgage Rate?” Answer this correctly and you’ll save thousands in interest. Pick the wrong rate type, and it could cost you just as much. These days, seemingly everyone’s got an opinion on fixed or variable rates. But unless they’ve taken the time...

HSBC’s 2.35% Rate & BMO’s $1,000 Cashback: RateSpy TV

This week on RateSpy TV: HSBC’s sizzling 2.35% 5-year Fixed: We’ll tell you if it’s too hot, how HSBC can price this low and how long this killer-special may last. BMO’s $1,000 cashback promo: Cash is nice but first-timers better think twice. Rate Surveillance: What do market rates need to do to make new highs? Stars & Dogs: The best and worst mortgage terms of the...

1946: An Analogue to Today’s Rate Market?

What do interest rate cycles of the past say about rates today? CNBC recently interviewed noted Wall Street technical analyst Louise Yamada and asked her that same question. If you’re a chart and market history geek, her answers will be of interest: On the length of cycles Interest rate cycles have typically lasted for decades, from 22 to 37 years. “The reversals from rising...

Mortgage Insurance Costs Rise…Again

Buying a home with less than 20% down? The government’s about to milk you for a few more grand. Come March 17, CMHC is boosting its default insurance premiums for the third time in three years. Here’s what they’re rising to, based on down payment size: Less than 10% down:                           +0.40% to 4.00% Between 14.99 and 10% down:         ...

How Long Can Rates Stay Up?

Trump’s battle-cry has been “jobs, jobs, jobs,” and that’s had bond traders screaming “sell, sell, sell.” Why? Because a Trump-pumped economy suggests: more U.S. government borrowing (greater bond supply is bullish for rates) more business and consumer borrowing (higher demand for money is bullish for rates) more inflation risk (a haunting thought for bond investors, and bullish for rates). Meanwhile, the world’s monetary kingpin, Janet Yellen, says the U.S. labour market...

Don’t Count the Divergence Before it’s Hatched

Canadian rates will follow their own path. Our economy isn’t sturdy enough to track U.S. rates higher…for long. Economists have been singing that tune for months now. And yet, Canada’s closely watched 5-year yield and its American cousin (the U.S. 5-year note) are moving together like train tracks. Why aren’t Canadian rates diverging more from U.S. rates? Technical factors aside, maybe the all-knowing market machine sees...

Average Mortgage Rates Fell in 2016

If you got a mortgage last year and paid less than 2.76%, you beat the averages. That was the typical rate for a new mortgages in 2016, according to Mortgage Professionals Canada’s (MPC’s) annual mortgage survey. It was a good year for those renewing a mortgage. A majority (64%) switched into a lower rate, with the average being 2.70%. This data confirms the obvious, of...