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Donald Trump's tariff capade has thrown a pall over the economic prospects of Canada. Uncertain investors and those who believe that tariffs will lead to a Canadian slowdown have stacked in bonds.
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Other things that are the same leads to buying bonds to lower bond returns, which usually means lower fixed mortgage interest. And that's exactly what we see.
In some cases, tariffs have powered fixed interest rates to a quarter percentage under the floating interest rates. However, the money markets imply two out of three chances that the variable interest rates will drop another quarter on March 12 after the next day of the Bank of Canada.
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In the last week, the lowest nationally advertised fixed prices for seven of the 12 terms we pursue fell. For example, the insured five-year-fixed fell by 29 basis points to 3.85 percent (from the Zitadell mortgage). We have not seen this type of rate since April 2022.
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Since the mortgage interest sinks into the threesome, this is both a psychological stimulant for the real estate market and a purchasing power amplifier. These twin forces will cause more potential buyers to buy windows for real business – actual purchase.
Robert Mclister is a mortgage strategist, interest analyst and editor of Mortgagelogic.news. You can follow him on X at @robmclister.
Mortgage interest
The prices shown below will be updated until the end of each day and come from the Canadian mortgage survey by Mortgagelogic.news. Postmedia and imaginative. Online Inc., parents of Mortgagelogic.news, are compensated by certain mortgage providers if they click on their links in the charts.
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