Bond Yields are Rising – What this Means for You

June 17, 2009  
Filed under Mortgage Options, Mortgage Rates, Preapproval

This just in from one of Home Mortgages Calgary’s lenders: Due to a new 5 year rate of 4.09%, Canadian 5 year bond yields are up 14bps to 2.71. It was only a month ago that 5 year bond yields were at 2.07.

With this new 5 year rate the spread dropped dramatically to 1.39%, indicating that another interest rate jump can be expected in the near future. In fact, it’s being predicted that we might see an increase of up to 25bps.

So, what does this mean for consumers? If you’ve been considering a mortgage or a pre-approval, get your mortgage application in soon!


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