| Sunday, May 9, 2010 Mortgage Rate Update - May 7th, 2010by Lyn Hart on Sun, May, 9, 2010 01:32 PM Rates Stay Steady This Week
Interest rates have not moved this week as the world adjusts to the new normal after 3 rate hikes on the longer terms. The ironic thing is that the yield on the bond market, where lenders go to get their funds to lend as mortgages, has come down to almost the same levels that it was at when lenders were offering 5 year mortgages for under 4%. Currently the “Banks” are charging 4.79% on their 5 year mortgage. There are lenders who have better deals but it would be nice to see the rates come down a little.
The uncertainty in Europe over the financial crisis in Greece….and soon to be other countries as well, is causing investors to flee to the safety of bonds and (oddly) the US dollar. This will make it even more difficult to predict the next move by the Bank of Canada. Perhaps the volatility will allow them to hold steady with the rates into the summer or later in 2010.
Many borrowers are going into a variable term these days with the idea that the coming increases will be manageable and drawn out. The Real Estate market continues to be brisk, especially while borrowers with a pre-booked rate find themselves a new home before time is up.
Bank Prime Rate 2.25%
|
Term |
Best |
Bank Posted |
|
1 year |
2.65% |
4.35% |
|
3 year |
3.29% |
4.6% |
|
5 year |
4.39% |
6.10% |
|
10 year |
5.25% |
7.05% |
|
25 year |
9.30% |
9.65% |
Bold numbers denote change from last posted rates.
Variable mortgage from Less Than Prime...TODAY at 1.75%!
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