What’s Going On With Mortgage Rates And What This Could Mean For You

TWO RECENT DEVELOPMENTS COULD HELP BRING MORTGAGE RATES DOWN

First, the collapse of banks in the U.S. and Switzerland sent shockwaves through the financial sector, causing a ripple effect through the global economy.

Fixed mortgage rates generally follow the 5-year Canadian bond yield. A growing number of investors, concerned about instability in the banking sector, are now fleeing to the safety of these government-backed bonds. An increase in bond prices means lower yields—and lower mortgage rates