Mortgage NewsAs part of our effort to keep you apprised of market conditions, please be advised that there is market pressure to increase interest rates on Fixed Rate Mortgages. Major banks have already begun to increase posted rates by approximately 25 bps on the five year fixed rate.
On Friday, employment data released showed Canada generated an additional 51,500 jobs in September, much higher than expected and pushing the jobless rate to levels not seen in decades.
This has renewed fears of inflation, and investors who though the Bank Of Canada would be either decreasing rates or remaining neutral, now believe the BOC might be considering an interest rate increase to keep inflation in check.
As a result, the 5-year benchmark Canadian Bond (considered to be a gauge of a lenderís cost of funds for the 5 year fixed term) was yielding 4.40 per cent this afternoon. Last week the same yield was 4.19 per cent, a difference of 21 bps.
Pro Link Mortgage Inc.