Remember the U.S. Debt ceiling crisis in the summer of 2011? Panic was an understatement. That story dominated headlines for close to 2 months. Stock markets dropped, but mortgage rates dropped, too. In fact, fixed wholesale mortgage rates dropped 0.50% in the months leading up to the Debt Ceiling deadline, from June to August…. And continued to drop another 0.70% into 2012.
Mortgage rates hit all-time lows in the fall of 2011 and just kept right on dropping. We hit our the all-time low in May 2013 before rates jumped almost 1.00% to our present 3.69%. (This is for 5 year fixed mortgages. Variable rates did not budge… Bank Prime rate has changed since Sept 2010…that’s important to remember as I will explain later) Continue reading “Another US Govt shutdown… could mean lower mortgage rates for Canada.”