Rates Subject To Change

Could bonds pull mortgage rates down even more?

Falling bond yields could spur a slight drop in medium-term residential mortgage rates this summer, claims RITA TRICHUR of the Toronto Star, but bargain-hungry consumers would be foolish to count on considerably cheaper borrowing costs, experts say.

About a month ago, banks blamed soaring bond yields for two sizeable hikes to key residential mortgage rates.

Those moves drove up posted rates on five-year fixed-rate loans by 60 basis points to 5.85 per cent.

While yields have reversed course in recent weeks, banks have yet to pass on those savings to consumers. Meanwhile, there are fresh signs of life in the housing market, fueling increased demand for mortgages.

Read The Whole Story Here: Toronto Star