A little known fact is that when the stock market drops the way is paved for fixed mortgage rates to drop. When the stock markets drop there is generally a flight to safer havens, like cash and bonds. The greater demand for bonds the lower their rates go. (Since the "return" in the stock market is less they can provide less of a return.)
Bond yields are what influence fixed mortgage rates, so as they decrease there is more and more room for fixed mortgage rates to drop too.
If we have a few more days like yesterday the fixed rates will drop by 0.10-0.25%.
Cheers,
Chris
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Christopher Bisson
The Mortgage Centre
Toll Free: 1-866-838-4366 x1003
www.mortgageconcierge.ca
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