Hopes for a rate cut took another hit on Friday amid an oversupply of jobs on both sides of the border.
Canada’s estimated 88,000 new jobs exceeded forecasts and, along with a rebound in GDP estimates in April, had recession forecasters quietly studying their shoelaces.
South of the border, Americans have doubled their labor market forecasts and futures markets have moved to price in interest rate hikes in both countries by December.
None of this scares people with variable interest rates, however.
More than 52 percent of prime borrowers at Dominion Lending Centers (DLC) applied for a variable rate in May. DLC originates more mortgages than anyone else in the country, making it a reasonably honest market representative.
The variable appeal is particularly strong on the insured side, where Pine advertises the lowest nationally advertised floater in the country at minus 1.10 percent (3.35 percent).
In Alberta, BC and Ontario, it is second only to Butler Mortgage’s variable rate of 3.30 percent.
If inflation keeps you up at night and you’d rather protect yourself, regional providers like Ratebuzz and credit unions can still get you close to or below four percent on the country’s most popular fixed term, the three-year term.
Robert McLister is a mortgage strategist, interest rate analyst and editor of MortgageLogic.news. You can follow him on X at @RobMcLister.
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