“Fixed mortgage rates are on the downslide, and borrowers are in for some good news. Recent employment and inflation reports have led to a decline in average fixed rates, making it the perfect time for potential homebuyers to consider locking in a mortgage. With the bond market fully pricing in the first Bank of Canada rate cut by next July, it seems that there is a strong possibility of fixed rates dropping even further.
Economies in North America are deteriorating, and with unemployment on the rise, the chances of the Bank of Canada making its first rate cut sooner rather than later are increasing. This economic slowdown, combined with the lower unemployment rates, could result in fixed rates starting with the number 4 instead of the usual 5 or 6.
The current state of the economy suggests that potential homebuyers could benefit from the declining fixed rates, making it an opportune time to consider their mortgage options.
The statistics were obtained from the MortgageLogic.news Canadian Mortgage Rate Survey on November 16, 2023. The survey includes only providers who advertise rates online and lend in at least nine provinces. Insured rates apply to those buying with less than a 20 per cent down payment or switching a pre-existing insured mortgage to a new lender. On the other hand, uninsured rates apply to refinances and purchases over $1 million and may include applicable lender rate premiums.
In conclusion, the declining fixed rates present an enticing opportunity for potential homebuyers to secure their mortgage at a more affordable rate. This could potentially offset some of the economic challenges brought about by the current state of the economy. It is important for potential homebuyers to carefully consider their options, taking into account the economic forecast and their personal financial situation.”