The 5 yr Gov of Cda bond yields hit a 2 yr high on Friday reaching just over 2.00%. That’s up around 0.35% since mid July and up around 0.75% since May. The increase started in May when the U.S. Federal Bank Chair, Ben Bernanke, made some comments about possible easing of the Fed’s stimulus program beginning as early as September.
Fixed mortgage rates are closely tied to the Gov of Cda bond yield. When the yield goes up, mortgage rates are sure to follow. With 5 yr fixed rates expected to rise, it makes for an interesting mortgage market. Which product and term is best to choose today? The answer is different for everyone. We all have different needs, goals and risk tolerances. Continue reading “5 year Fixed rates are going up.. time to consider Variable rate.”