Mortgage Rate News

The Fed Moves

Here are five things to know about Wednesday’s 1/4% U.S. rate hike: It’s over and done with, and it’s about time. Talking heads have yacked about the start of Fed tightening for years now. Meanwhile, the big event finally happened yesterday and bond yields (which guide fixed mortgage rates) barely moved. Yes, the Fed’s actions could push up Canadian long-term rates somewhat, out of sympathy alone. But ultimately...

Mortgage Briefs – Down Payments & Rates

As we turn the page on 2015, get ready for a host of new mortgage trends in the next 12 months. We’ll see new down payment rules, more talk of negative interest rates, and surprising moves with bond yields. Analysts are already making their predictions on how mortgage shoppers will be affected. Here’s a glimpse of what they’re saying now: On Higher Down Payments Last week the...

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 6-7 days we’re hearing banks cut discounts from prime by another 5 bps or so. This week was no exception. Sure, the banks have faced an array of funding cost pressures, but nothing...

Rate Surveillance

The Spy’s latest mortgage rate intel… Fixed Rates 5-year fixed rates are up 15-20 basis points in the last 60 days (ouch). A basis point, or bps, is 1/100th of a percentage point. Fixed rates track swap rates (and bond yields, but swap rates are a better proxy if you have the data). 5-year swap rates shot up with U.S. Treasury yields a...

Rates Up. What Now?

Those of you shopping for a mortgage can be forgiven for cursing 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 up Canadian mortgage rates. Have a look at what Canada’s 5-year bonds have been up to lately....

Mortgage Rate Curve

In recent weeks, lenders’ funding costs for variable-rate mortgages have jumped up to one-tenth of a percentage point. That’s largely due to higher-perceived credit risk in the overall financial markets. Being the profit-seeking enterprises they are, lenders have passed along that bump-up in costs to new borrowers. That means you’ll now pay roughly prime — 0.75% to prime — 0.85% for the most competitive variable rates in...

Interest Rate Forecasts Take a Dive

Interest rate projections are always a moving target so you never want to rely on them. But it’s nonetheless notable when forecasts from all major banks plunge at once. That’s what happened recently, after the Bank of Canada (BoC) unexpectedly chopped rates by 1/4% on July 15. Prior to that rate announcement, Canada’s Big 5 banks all saw Canada’s key rate climbing to 0.75% by the end...

Variable Rates Going the Wrong Way

Variable mortgage rates are under some pressure. A half-dozen lenders, including some major banks and large non-bank lenders, have shrunk their variable-rate discounts by 0.10 to 0.15 percentage points in the last few days. Their going rate is now prime – 0.50%. Lenders blame it on a combination of: Shrinking mortgage spreads (Spread refers to the difference between what a lender lends at and its cost...

Mortgage Rate Curve

Lenders’ funding costs in the fixed-rate market have been trending up for two weeks. Yet still, we’ve seen a small dip in the best 5-year fixed rates. Variable rates have been mostly 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...

Compare Monthly Payments – New!

It’s often helpful to know how much extra interest you’ll pay with a higher rate, a bigger mortgage, shorter compounding and/or a longer amortization. Now, the Spy makes that easy with an all-new monthly payment calculator. This tool lets you: Compare three different mortgages Instantly find the lowest cost option View interest cost over the term and amortization Check your balance at...