For those looking to break into the mortgage market — or are coming up for a renewal or refinance — today’s interest rates only seem to trend in one direction: up. But, as fears of a recession are starting to solidify, it may set the stage for some of the first mortgage discounts seen in months.
Government bond yields, which are used as the benchmark for pricing fixed mortgage rates, have taken a tumble as of late on softer economic news; the five-year yield currently sits at 2.65%, marking a 1% drop from the peak reached in early June. That’s an abrupt about-face from the sizzling run up seen earlier in the year; overall, five-year yields have risen 135 basis points year-to-date.
And just like that the 5yr GoC is down ~100 bps. pic.twitter.com/t6C5AdBKwX
— Rob McLister (@RobMcLister) July 28, 2022
Investors are reacting to a slew of negative indicators; expectations that…