Yields Catapult Higher
Fixed mortgage rates should tick higher next week--barring any economic surprises.
That’s because Canada’s 5-year government bond yield is up 18 basis points today, the most in almost five months. (Bond yields guide fixed-rate mortgage pricing.)
The jump in yields is thanks to stronger-than-forecast U.S. employment data, a new June maturity as the 5-year benchmark, asset rotation into stocks, and the 20% increase in debt issuance announced in yesterday’s budget.
If you’re considering a fixed-mortgage rate hold, it may be wise to lock it in by Monday.
Sidebar: We have to wait another week for Canadian employment data. Usually it comes out the same day as U.S. data, but not this week.
Posted at 09:30 AM in Mortgage Rate Trends | Permalink
March 05, 2010
Article Source: Canadian Mortgage Trends
Article Direct Link: Yields Catapult Higher