Fixed rates drop again; three-year mortgages remain biggest crowd-pleaser
Fixed mortgage rates slid again this week. The lowest nationally advertised uninsured two-year and five-year fixed rates dipped 11 and 10 basis points, respectively, to 6.08 and 5.04 per cent.
For those not requiring short-term financing, one- and two-year mortgages are still too expensive. But their rates will improve as Bank of Canada easing continues.
Three-year fixed terms are still the number one crowd-pleaser, with nationally leading offers at 4.84 per cent (insured) and 5.24 per cent (uninsured).
On the variable front, borrowers are crossing fingers for another Bank of Canada rate cut next month. Prospects of that took a big hit after disappointing inflation numbers on Tuesday. Average core inflation went the wrong direction, rising 0.15 percentage points to 2.85 per cent.
Forward rate data from CanDeal DNA now imply another rate cut by September, though July 24’s Bank of Canada meeting is still in play. There’s a pivotal jobs report next Friday and another crucial CPI release before the Bank decides.
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