A mortgage expert says five-year fixed mortgage rates could drop by 15 basis points due to coronavirus concerns. TORONTO — The ripple effects of the coronavirus are being felt on Canada’s bond market, which is translating into lower mortgage rates. “Fears of a possible coronavirus pandemic are sweeping the world,” said Scotiabank economists Rebekah Young and Nikita Perevalov in a research note. Lower bond yields drive down fixed-mortgage funding costs for lenders.” Rob McLister, mortgage expert at Rates.ca, told Yahoo Finance Canada. “Lenders then typically pass through those savings to borrowers.” McLister says five-year fixed mortgage rates could drop at least 15 basis points (bps) from here.

Source: Huffington Post January 30, 2020 14:17 UTC