All eyes on jobs report as mortgage rates tiptoe lower

financialpost.com:

Average fixed mortgage rates tiptoed slightly lower this week, but the leading offers didn’t budge.

Brace for impact from Friday’s marquee jobs report, though. It’s always got the potential to propel government bond yields, and by extension, fixed mortgage rates.

Bond markets continue to expect a better-than-even shot at a Bank of Canada rate cut on June 5. And, they’re pricing in a near lock for a cut by July 24, according to forward rate data from CanDeal DNA. That would bring Canada’s benchmark prime rate down at least 25 basis points to 6.95 per cent.

That prospect has borrowers getting more inquisitive about floating rates. And the belle of the ball is Toronto-Dominion Bank’s hidden 6.19 per cent (benchmark prime minus 101 basis points) variable-rate promo. To date, no other lender has publicly matched this offer and it’s scheduled to end May 14.

Oh, and if you call the bank’s mortgage hotline (like I did this week) and they’re like, “what promo?” — contact a broker instead. TD-approved brokers all know about this special and can hook you up if you qualify.