Mortgage Rate News

The Bank of Canada Countdown

A feeling or state of nervousness or excitement caused by wondering what will happen. That’s the definition of suspense. And that’s what the financial community is feeling right now about Wednesday’s Bank of Canada rate meeting. Will “The Poloz” chop the overnight rate in half, from 0.50% to 0.25%? Or will he stick in “wait and see” mode, and hope the devalued loonie...

Don’t Fear the Rate Blip

It’s been six whole days since RBC unexpectedly hiked mortgage rates, encouraging a herd of banks to follow its lead. But my oh my, how things can change in just one week. Interest rates outside the mortgage market have plummeted and rates are about to change…again. That’s got many thinking RBC’s rate hikes were just a blip (at least for fixed rates). If you’re a mortgage shopper,...

RBC Did What?

Mega-lender RBC announced today that it is raising 2- to 5-year fixed rates by 10 basis points and variable rates by 15 bps. (A basis point is 1/100th of a percentage point.) Is this a practical joke? RBC is lifting mortgage rates despite 5-year bond yields nearing four-month lows? That’s what many may be asking, but this is no joke....

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...