16 Nov Historical fixed rate lows could be gone very soon!
Fixed rate mortgages could be going up very soon as bond yields are going up. The spreads have seen massive compression in a short period of time which is not sustainable over a long period.
The last time we saw this setting was in the spring, and by the time fixed rates finally went up, increasing by .5bps wasn’t enough, and rates jumped significantly! Time to warn your clients that these historical low fixed rates could be gone very soon!
If the increase in bond yield continues to go up, the spread will continue to shrink and this could be a trigger for fixed interest rate mortgages to rise. Any questions on how it will affect you or if you are thinking of locking in that varaible rate mortgage please give Kevin a call
Pam Martin, Invis, Mortgage Broker, Best Mortgage Rates, Kelowna,Vernon, Penticton, Okanagan, British Columbia, Canada