Financial Post ~ February 6th, 2025
Robert McLister: Falling rates will entice more potential homebuyers to trade window shopping for the real deal — actual buying
Other things equal, more bond buying leads to lower bond yields, which usually means lower fixed mortgage rates. And that’s exactly what we’re seeing.
Tariff turmoil has driven fixed rates a quarter percentage point below floating rates in some cases. However, money markets now imply a two in three chance that variable rates will drop another quarter point after the Bank of Canada meets next, on March 12.
In the last week, the lowest nationally advertised fixed rates have fallen for seven out of the 12 terms we track. The insured five-year fixed, for example, just plummeted 29 basis points to 3.85 per cent (from Citadel Mortgage). We haven’t seen that kind of rate since April 2022.
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