You may have noticed in the media recently that interest rates are changing suddenly and unpredictably these days.
For example, the two-year swap rate (the rate at which lenders buy money to lend out) went from 5.41% at the beginning of the year to 4.70% at the end of last week, with a big drop of 30 points in just one week. But this week it has gone up again.
The reason for this is that lenders are not sure how to understand what the central banks are saying. People thought the central banks were done controlling inflation, but last week's good job report made them unsure again and the central banks are still saying they have more work to do. They could be saying this to scare people into spending less in their desire to reduce inflation.
This affects the way our banks set their rates, including mortgage rates. Some of our main lenders , have changed (reduced) their longer term rates recently, and they, and others, might keep changing them. The good thing is that banks are competing for customers by offering lower rates, but you have to ask for them. A broker can really help you there.
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