Canada blew away economists’ job growth estimates this morning. That’s driven 5-year yields to a new 8-month high.
This probably won’t have much impact on variable rates in the short-term, but fixed rates are now under pressure. Gross spreads are down to 100 basis points or less on deeply-discounted 5-year fixed rates (120+ is more “normal”). That means we’ll likely see some or most lenders lift rates next week.
If you’re contemplating a fixed rate on a home purchase or refinance, consider securing that rate soon to be safe.
Source: Canadian Mortgage Trends