times - they are a changing

its been awhile since my last post - but interest rates have reacted as predicted
there was a spike in the long term rates from a low of 3.69 to 4.64 in April and Early May.
Lenders immediately boosted the long term interest rates and are now enjoying a massive profit spread of approximately 1.9% over the government of canada 5 year bonds - this means there is plenty of room to drop rates - but i doubt they will unless business volumes drop and they want to entice borrowers back to the table
the Variable rate is at prime less .50 (currently 1.75%) and is likely the best option for those with strong stomachs and good equity in their homes
if the prime rate was to double from 2.25% to 4.5% - the variable rate would still only be 4%

greygoose out.