June 2013 Market Update
It seems a lot of lenders are moving up their 5year fixed rates in light of the Bank of Canada holding prime at 1% this quarter meeting and current bank prime staying at 3% as a result of the hold. That being said, mortgage rates are tied to the bond market so prime and mortgage rates don’t have to coincide exactly in their movement. However, in the money markets everyone is competing for new money and new growth, so they definitely do correlate to one another through market factors.
This rate move is only .1% and not all lenders are quick to adopt or even showing signs of adopting a higher rate pricing right now. Essentially, it seems like we’ll still hold under the 3% marker and currently still have a 2.79% 5 year rate available.
by: Narish Maharaj