Falling fixed priority rates could be booster juice for buyers

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Donald Trump’s Customs Capades have thrown a pallet over Canada’s economic prospects. Uncertain investors and those who believe tariffs will lead to a Canadian slowdown have stacked into bonds.

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Other things that are equal lead more bond purchases to lower bond yield, which usually means lower fixed priority rates. And that’s exactly what we see.

Tariffuro has driven fixed rates a quarterly percentage under fluid rates in some cases. However, money markets are now involving a two in three chances of variable rates falling another quarter after the Bank of Canada meets next, March 12.

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In the past week, the lowest nationally announced fixed rates have fallen into seven out of the 12 election periods we are tracking. The insured five-year-old fasting, for example, dropped just 29 basic points to 3.85 percent (from Citadel Mortgage). We haven’t seen that kind of rate since April 2022.

When the mortgage rates dip into the triangles, it is both a psychological stimulant for the real estate market and a purchase force. These twin forces will lure more potential house buyers to trade window to the right deal – Actually buy.

Robert McLister is a priority strategist, interest analyst and editor of Mortgagelogic.news. You can follow him on x at @Robmclister.

Mortgage rates

Below, which is displayed below, is updated by the end of each day and obtained from the Canadian Investigation Interest Survey produced by Mortgagelogic.News. PostMedia and imaginative. Online Inc., parent of Mortgagelogic.News, is compensated by certain priority providers when you click on their links in the diagrams.

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