The Stress Test Rate Could Fall Again

what does a home loan specialist do

With the current pandemic we see the markets are taking a bit of a toll. That said we can deduce certain information such as the government’s stress test rate for mortgages. When big banks lower their five year fixed rates, the government responds and typically we get easily loans for people looking to borrow. We can’t quantify when exactly the stress test will fall but the trends see it happening following the RBC’s posted fixed-rate reductions.

Key Takeaways:

  • Since peaking in October 2018, the government’s 5-year bond yield has dropped 212 basis points.
  • RBC cut its 5-year fixed rate, which could ease the stress test and make it less difficult to qualify for a mortgage.
  • After plummeting, the price of oil has risen 258% since April 21st.

“Washington’s denunciation of China’s handling of COVID risks jeopardizing trade progress between the two countries.”

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