Who would have thought we would see a day with 5 year mortgage rates this low? It was just recently when BMO came out with their industry leading 5 year fixed for 2.99%. Well, now you can do even better than that!
If your mortgage is closing within the next 30 days, you can get a 5 year fixed for as low as 2.94%. This mortgage has 5% prepayment privileges (which is still $15,000 on a $300K mortgage). It is also fully closed for the first three of the five years, meaning you cannot pay off in full during this time unless you sell the home.
For closings within 60 days, you can get an effective 5 year fixed rate of 2.99% with full 15% prepayment privileges or a 3 year fixed for 2.69%, with 15% prepayment privileges fully closed for the first three years.
Bond yields are down again today so far, and have been trending downward now since April 25th. Fixed mortgage rates are determined by bond yields, so as long as they are low, mortgage rates will be as well.
There has been no change in the above rates and I don't expect them to change any time soon. We would need to see some significant upward movement in the yields before we would see any upward movement in fixed mortgage rates. This of course is good news for anyone with closings beyond 30 - 60 days as 5 year fixed rates at or below 2.99% may still be available to you at the time your closing rolls around.
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