27 June 2011
It’s interesting that now the spread between the 5-year posted rates and bond yields is the widest since October. It’s even higher than the 10-year average.
All these numbers suggest that soon we may see a fixed rate decline in the nearest future.
The majority of financial institutions have already trimmed their rates. And although they are doing everything to keep the spreads as large as they can, soon the situation may change.
It looks like if the yields don’t go up this week, banks will have to adjust their advertised fixed mortgage rates very soon.