Could we see the fixed rates fall, again?
The 5-year government bond yield has dropped over 30basis points from the 21-month high it set a few weeks ago.
As of this writing, the 5-year yield is at 2.88%. That’s 20 bps below its level on April 26 (the date RBC led the industry higher with a 15 bps hike in fixed rates).
Chart watchers now expect the yield to head down towards support. Support is around the 2.75-2.80% mark, which is a long-term level where there have been multiple turns in yield direction.
Since fixed mortgage rates are linked to bond yields, we could see discounted fixed rates fall somewhat in the very near future.
Source: Canadian Mortgage Trends