Market Update

The past few weeks have seen some unusual patterns starting to unfold in the Canadian mortgage industry.

Royal Bank increased their rates this week,  which is contrary to the falling bond rate situation. Bonds have dropped 50-60  basis points since Nov. 2015 due to weak global markets.

The recently announced mortgage changes included a section which dealt with new additional capital requirements OFSI will be requiring. There is currently an unusual large spread on rates between lenders, It is too early to tell where all this will end up.

Also the spread between fixed and variable rates mortgages, has continued to shrink.
5 year fixed rates are still in the 2.64-2.84% range with variable rates being between prime(2.7%) less .2-.45%.

Here is a link to a bond site for those who want to follow this more closely, this is the site we rely on for our information.

http://www.investing.com/rates-bonds/canada-5-year-bond-yield-streaming-chart

P.S. If you, your family, or co-workers require guidance on current market trends, please call me, I am always available to help.