- Mortgage deal hunters shouldn’t expect significant changes after Bank of Canada interest rate decision.
- Two key factors to watch for in March:
- Further disinflation: Central bankers aim for progress in core inflation on both sides of the border.
- Cooperative bond yields: Canada’s fixed-rate leading five-year government yield should stay below February’s high to prevent a mortgage rate increase. If it drops below February’s low, chances for rate relief in spring/summer improve.
- Financial markets anticipate three rate cuts this year, with the first expected in July, although this outlook may change based on inflation trends.
- Recent developments:
- U.S. annual core inflation in line with expectations, showing a slight deceleration.
- Canadian GDP growth stable, with no significant impacts.
- Yields are down, resulting in slight decreases in leading fixed mortgage rates.
- Notably, the leading nationally advertised uninsured five-year fixed rate is nearing the four per cent range, offering a small morale boost for house hunters.
- Default-insured borrowers, who typically receive lower rates, already benefit from a national five-year rate of 4.69 per cent.
