Buckle up as it may be a bumpy ride. Since Russia decided to invade Ukraine, I am not saying because of it but this did start around the same time, that bond yields have been steadily rising thus the fixed mortgage rates have also been increasing.
In the past month the 5 year discounted fixed rate has increased by 90 basis points from 2.89% to 3.79%. There are many in the mortgage industry who say that they see this increasing further to over 4% and only then possibly settling down. There is also talk of the Bank of Canada increasing the overnight lending rate by 50 basis point on the next meeting on April 13th. Doing so will then increase the prime rate from 2.70% to 3.20%.
While the costs of almost everything has been increasing lately from the homes we buy, the wood we use the construct them and the gas we use to get ourselves around. Just be thankful that we live in a safe and free country. Do your best to help those around you who are in need. So until this all settles down, just buckle up and do your best to get through it.
I look forward to hearing from you in regard to your mortgage needs.
p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).
p.s.s.s You can download my new mortgage app here