Variable rates on new mortgages could get a little cheaper this quarter, for one of four reasons, or maybe all four: Bankers’ acceptance (BA) rates — a general proxy for variable-rate funding costs — are at an all-time low. That’s boosted the spread between prime rate and BAs to almost a 12-year high. Think of that spread as a rough...
“What’s the lowest rate?” is one of those questions you can’t answer with one number. There are just too many factors that determine the rate someone pays. You have to ask more questions, like: How much equity do you have? Are you purchasing a home, refinancing, or just switching lenders? What term do you prefer? What province are you in?...
The Mortgage Report: Jan. 6, 2021 U.S. 5-year yields leaped to a 7-week high on Wednesday as Democrats took control of all three houses of government, thanks to their historic win in Georgia. Canada’s 5-year yield rose in sympathy by a less notable 2 bps, but economists nonetheless expect more of an incline in rates this year. The reason: Democrats...
Only fools lock in for a decade. That’s what many thought prior to this year, and some still do. But at least now it’s more debatable. That’s because, for the first time ever, there’s a 10-year mortgage with a 1-handle. On Monday, a few mortgage brokers started advertising a 1.99% 10-year fixed, breaking Tangerine’s prior record of 2.14%. The move...
The bad news: COVID cases have exploded, hospitalization numbers are surging and most people may be slow to get vaccinated. The good news: the fatality rate is dropping and vaccine distribution could start next month. The question is, which news will the bond market pay more attention to? Our guess is the latter. Black swans aside, markets often discount major...
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