How Low Will Mortgage Rates Go?
According to Rodney Johnson from Dent’s Research Group, we may see mortgage rates dip lowing the months to come but it would be very strange for rates to fall too far for one simple reason. Unlike other countries, we commit lenders to 30 years.
He goes on to say: In Canada, rates reset every few years, and the new negative rate in Denmark only lasts ten years. The more frequently rates reset, the lower the rate lenders can offer at the beginning, which is why adjustable-rate mortgages carry lower rates at the outset.
What is the take-away from this information? As the 30-year US Treasury Bonds and other domestic bonds fall, predicted to fall below 2% or even to 1.5%, it's not a given that mortgage rates will follow and most certainly not to the same percentages.