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转贴 Mortgage rates jump again
http://www.cbc.ca/money/story/2007/05/29/mortgages.html8 |4 c3 V( P! q* F
8 K( ]+ h! a! M3 i. m7 m" ALast Updated: Tuesday, May 29, 2007 | 4:28 PM ET
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- S' H0 P& P3 w hMortgage rates went up Tuesday for the second time in two weeks as the Bank of Canada sent a strong signal that borrowed money is about to get more expensive.
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RBC Royal Bank, TD Canada Trust, BMO Bank of Montreal and CIBC have all raised mortgage rates by up to three-tenths of a percentage point, effective Wednesday.6 G$ v1 ]) P8 s. V3 k7 ^% y
+ P4 Q* ~8 p( X: d$ ]The posted rate for a five-year closed mortgage is now 7.14 per cent. The banks had boosted the rate for the five-year term to 6.84 per cent less than two weeks ago.
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2 y# |' v7 {( W* @# L9 FOther banks are expected to follow with rate hikes of their own., O! d+ V9 Q' o- [- w
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Yields in the bond market, where mortgage financing is determined, jumped Tuesday after the Bank of Canada delivered a strong hint that it may boost interest rates soon — and perhaps more than once this year — to fight inflation.
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The yield on the benchmark two-year Government of Canada bond jumped more than a tenth of a percentage point to 4.57 per cent. It was just 4.18 per cent at the start of May. 2 ^& h5 X; c: J* l) t5 o( I; M1 Z! q
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The posted rate for a five-year closed mortgage is now lower than those for two-year, three-year or four-year mortgages. That type of inversion is unusual, as banks usually charge more for locking in rates for longer terms. |
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