The US Federal Reserve Bank had announced earlier this summer, about the time the five year rates started going up, that the Reserve Bank would slow down its’ purchase of US Treasury Bonds. Fixed mortgage rates based on bonds started moving up. This week the chairman of the US Reserve Bank said, oops, maybe we should continue buying Treasury Bonds awhile longer. This should mean the rapid rise of fixed rates over the last couple of months should slow down and may even reverse itself slightly. It should also mean that the prime rate gets left alone for a few more months. The governor of the Bank of Canada was suggesting earlier this week that prime might go up soon but after this week’s happening we could see things left alone, for a few months anyway, if not longer.
Posted on: Fri, 20 Sep 2013 20:23:57 +0000
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