April 2016 Quarterly Mortgage Outlook

Variable

Outlook remains for prime rate to stay at it’s current level of 2.70%. Variable rate discounts have improved and might see further improvement as the competitive spring market gets into full swing.

Fixed

Fixed rates are trending lower with increased competition combined with lower bond yields the driving factor in fixed rates. 5 Year fixed at 2.59% is common with quick close high ratio specials in the 2.49% range. One surprise is that 2 year terms are higher than 3 year terms for many lenders. Speculation is that it is so that payout penalties are higher since the statistical penalty breaking period is 30 months into the term.