Oil prices have sprung off their June lows with gusto. Add in a firming economy, and these two factors are keeping bond yields stubbornly elevated.
That, of course, is not what fixed mortgage shoppers want to hear, since fixed rates take their marching orders from the bond market .
The real question is: how far does core inflation rebound given the recent surge in headline inflation (which usually leads core)?
Gas prices cratered in June, so Monday’s Consumer Price Index (CPI) should deliver some headline relief. But gas futures have since staged a comeback, meaning July’s inflation number may not be so charitable.
Add it all up, and you get one thing: mortgage rate risk.
Borrowers looking to duck that risk are mostly grabbing three- and five-year fixed rates, which sat perfectly still this week.
Regional providers like Ratebuzz (Ont.), Multi-Prets (Que.), Coast Capital (B.C.), Affinity Credit Union (Sask.) feature the lowest advertised fixed rates.
Regionals rule the floating-rate market, too, with Butler Mortgage (Alta., B.C., Ont.) advertising Canada’s lowest mortgage rate : a remarkable 3.25 per cent (prime minus 1.20 per cent) variable offer for default-insured borrowers.
Robert McLister is a mortgage strategist, interest rate analyst and editor of MortgageLogic.news. You can follow him on X at @RobMcLister.
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