Mortgage Rates Rising - October 2009
With Australia's Central Bank coming out this week and being the first of the G-20 countries to raise their prime rate, it struck fear into the bond markets and ultimately caused the mortgage rates to rise. Over the course of less than a week, the 5 year fixed rate has gone from 3.84% up to 4.14%. What struck fear in the market are that there may be more countries start to follow Australia's lead and raise their prime rates as a preventive measure to battle any possible inflation that may start to occur.
Here is a great article from the Globe and Mail explaining how the fear of the Bank of Canada raising rates is fuelling lenders to be proactive in raising their mortgage rates.