Bond Yields Surge, Mortgage Rates Rising in Response

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Canadian bond yields hit their highest level since April in recent days, and a number of lenders have responded by starting to raise some of their mortgage rates.

CMLS, MCAP and First National were among the non-bank lenders to increase at least some of their rates, with their broker rates rising 10-30 bps.

The 5-year bond yield, which leads fixed mortgage rates, closed at 0.67% on Monday, a 10-month high. As funding costs rise, lender margins get squeezed to the point they can no longer absorb the increase without passing it on to borrowers.

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Original Article Source Credits:   CANADIAN MORTGAGE TRENDS ,  https://www.canadianmortgagetrends.com/

Article Written By:  Steve Huebl

Original Article Posted on:  February 23, 2021

Link to Original Article:  https://www.canadianmortgagetrends.com/2021/02/bond-yields-surge-mortgage-rates-rising-in-response/

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