Five-year fixed mortgage rates are falling as government bonds drop
BNN Bloomberg
A downward trend in some Canadian fixed-mortgage rates may be welcome news for eager homebuyers, but real estate experts warn that housing affordability challenges persist.
Rates for a five-year fixed mortgage have declined with a drop in government bond yields, which set the lending rates for home mortgages, RATESDOTCA real estate expert Victor Tran explained in an interview.
"We’ve been on a downward trend on fixed mortgage rates for a few months now," Tran told BNNBloomberg.ca on Thursday.
He linked the falling mortgage rates to a decline in the government bond market that has been ongoing for the past few months, as the market anticipates central bank interest rate cuts on the horizon. Tran said he expects mortgage rates to fall further if the trend continues.
