Good morning All
Only a few minor changes to report as far as mortgage interest rates go. A couple of lenders have reduced their discounted 5 year rate by 10 BPS to 4.39%. We are aware of a lender offering a special (on approved credit and subject to conditions) of 4.24%. Contact a licensed mortgage broker for more information.
The balance of terms haven't moved in some time now although a variable rate is available at prime (which remains unchanged at 2.25%) + .35% (2.60%) vs the best variable a short while ago which was prime + .40%.
The bond has had a few ups and downs the last few days but retreated 6 bps yesterday to 2.51% maintaining a 1.98% spread with the majority of the lenders.
With these spreads close to where they were approximately 6 weeks ago immediately prior to lenders pulling the pin and jacking up rates (from well below 4.0%) by approximately .75%, many are asking the question "Why haven't they reduced rates back to where they were previously?" to which many are replying "Profit taking".
We end by saying that rumour has it that the "no frills" mortgage may be making a comeback ... stay tuned for more on that.
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