Interest Rate Downtrend Continues

Last week, for the first time since I’ve been tracking rates, the 5-year swap rate became less the the 90-day swap rate.  This seems to have triggered the banks’ significant reductions of fixed rates.  It also coincides with the sovereign debt crises and the turmoil in the stock markets, which can only mean that the current downtrend in rates will continue.  That is very good news for borrowers, especially those with variable rate loans.