Up there in the great white north. The BOC has decided to push down mortgage rate to the point that now fixed rate 5 years is about 0.3 - 0.4% lower than variable rate 5 years.
For those fortunate enough not to be in the mortgage hole, historically variable rate has always been lower than fixed rate. Now the rare opposite has happened.
Typically this is sign of a slowing or shrinking economy that BOC is trying to kick start. Also provide some much needed hot air to keep the real estate bubble from imploding. Is this the start of the blow off top or another attempt to prevent price collapse?
