Rates could be going up in the near future if the bond market continues on its current trend:
Canadian 5 year bond yields markets +.06 to 1.58. The spread (obtained by subtracting the bond yield above from the industry average 5 yr rate Published mortgage rate of 3.29) has tumbled well below the profit range at 1.71. If the increase in bond yield continues upward, the spread shrinks, which could prompt interest rates to rise. The range for investor desired profitability is currently a bit lower in the region of 1.75 and 1.95.
If you're looking to purchase/refinance/transfer within the next 4 months, it might be a good idea to lock in your rate. 5 year fixed rates are in the 2.84-2.94% range, depending on the product.
Feel free to give me a call/email/pm with any questions.
Greg
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