Jerome Powell’s speech expected to send clarion call on rate cuts

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All eyes in the interest rate markets will be on Federal Reserve Chairman Jerome Powell on Friday. In his annual speech in Jackson Hole, Wyoming, he is expected to give the all-clear that US interest rates will be cut next month.

Financial markets could interpret this as a sign of falling bond yields, which would also benefit fixed mortgage rates on this side of the border.

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Speaking of fixed rates, they continue to fall like December temperatures. Notable developments this week included Pine Mortgage cutting its advertised three-year uninsured fixed rate to 4.84 percent. Three-year terms are popular as borrowers avoid long-term commitments during a rate-cutting cycle.

We also observed that leading five-year insurance rates fell as low as 4.19 percent this week.

As for variable rates, everything is as unchanged as Grandma's wallpaper. Nesto's nationally leading offers remain at just 5.40 percent for insured mortgages (prime minus 1.30 percent). If your mortgage is uninsured, you'll need to add at least 45 basis points.

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Mark Thursday, September 5, for the next rate drop, the day after the Bank of Canada cuts rates. Financial markets are calculating a 94 percent probability of this happening.

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

Mortgage interest rates

The rates shown below are updated by the end of each day and are taken from the Canadian Mortgage Rate Survey by MortgageLogic.news. Postmedia and Imaginative. Online Inc., the parent company of MortgageLogic.news, receive compensation from certain mortgage providers when you click on their links in the charts.

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