Here is an excerpt from an email recently sent by a lender rep:
… I believe we are in for a couple spikes… Last week, mortgage rates went up 20 bps and this week another 40 bs, that’s 60 bps in total. The sub -- 4% 5 year Mortgage Rates in Canada are now GONE... GONE … Long term (10 year treasury bonds) bonds in the US are near 4%, up 2% from 6 months ago… the longer term (30 year) bonds are getting very close to the magic 5%, that the cash guys want… there is also speculation out of the States that these same 30 year US treasury bond could go to 7% or 8%.... This all effects the same Canadian Bond Yields which are up similarly...I don't want this to sound alarming… but we all need to be aware of the impact of the pushes in the bond yields… it is a sign that the 'Cash Guys' want more… thus this will lessen spreads (Mortgage Rates vs Bond Rates) and push the lenders (like us) to move rates… Like I have said before… I would suggest that you contact your clients --- ones 'sittin on the fence' because they believe one or both of the following:" I think rates are going to go lower and I don't want to pay more than I have too… ""… house prices are coming down, I want to wait and get best deal…"
As you all know these are the best of rates in the last 1/2 Century or so… this is the time to get your clients the best rates… lock the rate… the bottom is rising. I want to ensure that you are able to assist your clients in getting the best deal… and NOW is the time