These four things will determine if mortgage rates keep sliding lower

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Mortgage interest rates are going quietly into the new year. Only one key rate has changed in the last two weeks, which is not uncommon during the slow holiday season. This rate is the uninsured four-year fixed rate, which has decreased by five basis points since our last report.

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The bond markets, the merry puppet masters of fixed mortgage prices, remain in standby mode. Traders expect four revelations this month:

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  1. What trade and financial policies Trump will order after the inauguration;
  2. What the Bank of Canada and the United States Federal Reserve do at their meetings on January 29th;
  3. What Next Week's Jobs Reports Reveal; And
  4. How inflation develops later this month.

A combination of the above factors will help determine whether Canadian mortgage rates continue to trend downward.

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  1. Bookmark this page to find the lowest national mortgage rates in Canada.

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  2. If mortgage rates trend sideways in early 2025, the spring housing market will be less buoyant than expected, writes Robert McLister.

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For most new borrowers with a stable, verifiable income and solid finances, however, the best solution is to secure three-year fixed financing in the low fours. Three-year terms offer a balanced risk-reward ratio, are cheaper than other terms and carry a lower risk of prepayment penalties than longer fixed-rate mortgages.

Robert McLister is a mortgage strategist, interest rate analyst and editor of MortgageLogic.news. You can follow him on X below @RobMcLister.

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Mortgage interest rates

The interest rates shown below are updated at the end of each day and come from MortgageLogic.news' Canadian Mortgage Rate Survey. Postmedia and imagination. Online Inc., parent company of MortgageLogic.news, will be compensated by certain mortgage providers if you click on their links in the charts.

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