On 3/29/2010 Royal Bank of Canada (RY) announced it is increasing several mortgage rates by up to 6/10ths of a percentage point. The largest increase is in the posted 5yr fixed closed rate, which increased from 5.25% to 5.85%. Increase to the 3yr fixed closed rate is 1/5th of a percentage point to 4.35%. Increase to the 4yr fixed closed rate is 2/5ths of a percentage point to 5.34%. The rates become effective Tuesday 3/30/2010.
This rate increase comes even as the Bank of Canada held the key overnight lending rate steady at 0.25%. Other banks are expected to increase their rates as well. This should not come as a surprise though, as we have been discussing this for well over a year and have seen this trend before.
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