Bond yields have come down in March giving the banks room to maneuver in pursuing the Spring mortgage market. Record low mortgage rates are currently available and are expected to persist for at least the next 30 days. Yields started the year in the mid 1.4% range and except for a brief run up to 1.53% have remained relatively flat. In March the government of Canada benchmark 5 year bond yield dipped to as low as 1.28% and is currently trading in the mid 1.3% range.
The lower bond yields represent a lower cost of funds allowing mortgage companies the ability to offer lower mortgage rates without compromising on profits. The lower costs plus the reduced demand for mortgages caused by the cool down in the housing market are prompting mortgage lenders to aggressively price their mortgage rates and this trend is expected to continue into the Spring market.
Record low 5 year fixed mortgage rates below the 3.0% threshold are once again emerging only this time they are more widely available. When shopping for your next mortgage make sure to check look on-line for the mortgage rate range you can expect and then find a trusted mortgage professional who can secure the product that best meets your needs.