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转贴 Mortgage rates jump again
http://www.cbc.ca/money/story/2007/05/29/mortgages.html& h0 c8 v. A7 n
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Last Updated: Tuesday, May 29, 2007 | 4:28 PM ET
6 \, F% V- R) f* A2 i" nCBC News T' h; G3 _8 Z( W1 W
" c2 O! a# e, `& o: [( l1 \Mortgage 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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- z* J- i0 w2 ~, R* |: ORBC 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.
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3 E- ^; ]; L1 _0 m6 uThe 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.! W8 M! M" w& O) o" h, i
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Other banks are expected to follow with rate hikes of their own. w- R. T9 L Q. f6 E
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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.3 t/ m( F, v! y K& b4 z
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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.
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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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