Fixed rates for some mortgages still falling even as bond yields creep higher
Robert McLister: There’s no imminent widescale threat of fixed rates rebounding
After moving sideways for a few weeks, government bond yields — those things lenders benchmark fixed mortgage rates to — are creeping higher. There’s no imminent widescale threat of fixed rates rebounding, however, as most lenders’ profit margins are still healthy.
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Compared to last week, nationally-advertised default-insured fixed rates fell another one and five basis points for four- and five-year terms, respectively. The lowest insured variable rate went the wrong direction, however, up five basis points to 5.20 per cent.
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In the uninsured market, the leaderboard was quiet as a church on Monday. Only the four-year fixed saw movement, down one basis point on the week.
We’re now 21 days away from the next likely Bank of Canada interest rate cut — a 25 basis-pointer if the bond market is right. The more they cut, the more people will be interested in variable-rate loans.
As it stands, the gap between leading five-year fixed and variable offers is 106 to 126 basis points, depending on whether the mortgage is uninsured or insured. That gap is still too wide for most folks who prefer their rates to be like their relationships: stable and predictable.
Robert McLister is a mortgage strategist, interest rate analyst and editor of MortgageLogic.news. You can follow him on X at @RobMcLister.
The rates displayed below are updated by the end of each day and are sourced from the Canadian Mortgage Rate Survey produced by MortgageLogic.news. Postmedia and Imaginative. Online Inc., parent of MortgageLogic.news, are compensated by certain mortgage providers when you click on their links in the charts.
