This mortgage news article was taken with a Credit to : National Post , Canada’s business voice, Tuesday, January 21,2014

TORONTO • Falling bonds yields could push mortgage rates lower in coming weeks as banks compete in the spring housing market, traditionally the strongest real estate period of the year.

Rob McLister, editor of Canadian Mortgage Trends, reported on his website Monday that Royal Bank of Canada had dropped its deep discounted rate on its fixed, closed five year mortgage to 3.69%. It was just a 10 basis-point cut, but with the way bond yields have started to drop since the beginning of the year, the question is whether there is more to come.

Royal Bank acknowledged it did lower rates 10 basis points on two-, three- and five year fixed rate terms. “Rates were lowered to match competitor pricing. Competitors have been pricing at lower rates for several weeks, and this rate change now puts us in line,” said a spokesperson.

“The big banks like to cut only enough to maximize their profits,” said Mr. McLister, who is also the founder of ratespy.com. “The fact is when a big bank changes course like this and cuts it advertised rates generally speaking it’s evidence of further change to come in the short-term.”