last week we saw the 5 year government bonds drop below 4% - and RRSP season is over - we also saw the stock market correct which could lead to stronger bond yields - but I dont think so..I still believe rates will drop back to the 5% range for 5 year terms.
but dont forget - the government and lenders have come out with 40 year amortizations, 100% financing at discounted interest rates - we are seeing the market slow and prices are stable but not rising - therefore we could be headed towards a US recession or dramatic slowdown which will spill over to Canada.
If you are on a floating interest rate - keep your eyes on the bank of canada announcements and on the discounted fixed rates - if interest rates do not drop for prime by July 1- I would look at the fixed interest rates and consider locking in ....time will tell..
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