The NAFTA announcement sent bond yields higher yesterday making lenders squeamish. The 5-year yield jump to 2.42%, a high not seen since May 24, 2011 and at that time the 5-year fixed rate was 3.99%.
Looking at my Rate Barometer one thing became clear…the pressure is mounting and a fixed rate hike is on the horizon. Keep in mind, any rate hike would be modest keeping rates beneath 4%…for now. Should we see continued upward pressure, Banks will increase their posted rates sending the Bank of Canada qualifying rate slightly higher. Do you now when was the last time we had fixed rates above 4%? May 18, 2011 was the last day and the 5-year fixed was 4.19%. The same 5-year fixed fell to 3.99% just one day later.