Mid-May Mortgage Rate Update

May 19, 2009  
Filed under Mortgage Rates

In the past few months, we’ve seen mortgage rates continue to decrease, albeit very slowly. That trend could be short-lived, however, since fixed rates are tired to bond yields – and bond yields are starting to increase. Because lenders still need to make a profit, their rates have to rise as bonds’ rates do. Therefore, if you’re looking to purchase or refinance, it’s a good idea to do it soon.

The Bank of Canada also decreased its overnight lending rate by another 0.25%, making a new historically low rate of 0.25%. Lenders’ prime rate also decreased by a quarter percent, to rest at 2.25%.

1 year: 2.90%
2 year: 2.90%
3 year: 3.05%
4 year: 3.69%
5 year: 3.54%
7 year: 5.15%
10 year: 5.20%
Variable/ARM: 3.00%
HELOC: 3.25%

Note: Rates are current as of May 15, 2009.

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