Bond yields surged to a fresh 14-year high this week, driving expectations that fixed rates are likely to continue rising.
As we reported last week, the Government of Canada 5-year bond yield was already on its way up, crossing the 3.20% threshold. Well, on Monday it broke the 3.51% barrier.
This is important because the 5-year bond yield is the best indicator for future moves in 5-year fixed mortgage rates.
Fixed mortgage rates have already been trending higher, with discounted, nationally available rates reaching an average of 4.80% for uninsured mortgages (those requiring a minimum down payment of 20%), while average insured rates have risen to an average of 4.57%, according to data tracked by Rob McLister, rate analyst and editor of MortgageLogic.news.
With bond yields up 20 basis points from Friday, borrowers should expect that…
