The Stock market volatility is playing havoc with the bond market, and we are seeing wild fluctuations in fixed interest rates from our discount lenders. We began the week with our best rate for a five year fixed mortgage at the 3.79 % mark, and this morning I just received a commitment for a client on a five year fixed rate mortgage at 3.04%. This is unprecedented, and a good example of why you should call us before you commit to a mortgage offer, as we don’t always have time to update our website.
Here is how things are shaping up in the market now:
- TSX -435.90 to 12380.13 North American stock markets took a hammering Thursday as investors grew ever more pessimistic about the economy with evidence mounting that a serious slowdown may be under way
- DOW -512.76 to 11383.34
- Dollar -1.82 to 102.04 USD
- Oil -6.84 to 85.63USD per barrel
- Gold -11.80 to $1652.50USD per ounce
Canadian 5 yr bond yields markets -22bps to 1.67. The spread (based on the 5 yr rate published rate of 3.69%) is above the comfort zone at 2.02. The spread based on the quick close of 3.49% is above the comfort zone at 1.82 http://www.tmxmoney.com/HttpController?GetPage=BondsAndRates&Language=en