Fixed mortgage rates finally moved up and they did so with a bang jumping upwards three times in three weeks. The best five year rates earlier in June were around the 2.80% mark while now they have increased to around 3.50%.
Most other terms have also increased including the 10 year rate which we were previously offering at 3.69% and now has increased to 3.99%. With these increases in rates lenders have been extremely busy as people look to lock in their rates. Turnaround times at most lenders have slowed dramatically as a result of this.
The next question now is where will rates go next? The sentiment we have is that rates have increased and will now remain steady for a while. Rates were suppressed for quite some time and so this increase is not unusual. We now expect a period of steadiness over the summer. There are still large economic issues out there which will tend to keep rates lower. A five year rate of around 3.5% is still a great deal. We even have 5 year rates still as low as 3.24% for new deals coming in.
For those of you in a variable rate mortgage the Prime rate has not moved at all and we don’t expect it to go anywhere until at least next year. So if you’re in a variable at under 2.5% it may be best to just stay where you are as there are significant savings still to be had from being in a variable rate mortgage.