Mid-May Mortgage Rate Update

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.