How high will they go? It depends on the Bond market and the 5 year Canadian bond yield.
The best 5 year has gone from 2.89% to 3.39% in only 3 weeks.
This is happending because of the turmoil in the US surrounding the government possibly cutting the
economic stimulous program. The bond prices have gone up as a result and Mortgages are funded by bonds.
This happened 3 years ago and rates went from the low 3.29% range to as high as 4.89%.
They did trickle back down over a 6 month period.
My advice is to work through a broker and get a rate set through pre approval to hold todays current rates.This will stop the bleading.
I think these rates a nearing a peak and clients serious about buying a home or refinancing should be prepared to shop hard or use a broker. There are still some great deals out there. If rates drop in the next 90-120 days, the client will get the lower rate provided they haven't closed their deal.
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