3 June 2011

Fixed rates fall again

Recently some of the big banks announced a 10bps (0,1%) rate decline on all fixed-rate mortgage terms.
Actually, it’s the third rate cut in the last 16 days.
This time posted 5-year fixed rate is falling to 5.39%.

This means it will be easier for borrowers to qualify for variable mortgages when all big banks follow the tendency.
Because of worrying North American economic data, fixed-rate funding costs have decreased lately. Today the 5-year government yield is 2/3 percentage point lower than its one-year high from April 8.
Other lenders cut their 5-year fixed mortgages to 3.69% or less.

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