Posted by: Daryl & Wendy Ashby | May 30, 2011

Unbelievable Rates

For the second time in nine days, RBC has led the banks in dropping fixed rates.

This time, all of RBC’s advertised fixed rates are falling 0.10%, effective tomorrow. The other banks should be right behind.

RBC’s benchmark posted rate is dropping to 5.49%, the lowest since March. Come June 6, that 5.49% will be the new qualifying rate for insured mortgages less than five years. (Monday’s qualifying rate will be 5.59%).

RBC’s “special offer” 5-year rate is now 4.34%, but actual street rates are below 4.00% for qualified borrowers.

Today’s rate move coincides with plunging bond yields (bond yields guide fixed-rate mortgage pricing). The rate on the 5-year government bond sank to 2.30% this morning, a new 6-month low.

Variable rates are unchanged

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