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in the mortgage marketplace ...
As we have talked about before, fixed mortgage rates correlate closely to Canadian Bond yields and the bond market moves in advance of - in anticipation of - Prime rate changes.

In the past two weeks, Canadian bond yields have dropped over 50 basis points as the market is getting more confirmation that inflation may not be as sticky as we thought.  It is already pricing in another Bank of Canada rate reduction on July 24 - and that is good news for anyone in the real estate business.  

Without going much further into the weeds, the spreads are such that we should be seeing some fixed mortgage rate reductions sooner than later - assuming the trend continues.  

Reductions in fixed rates - further moves in the Bank of Canada rate - are all going to have a strong impact on consumer sentiment - and I suspect that this calendar year is going to finish much stronger than it started for housing sales/activity - subject to supply of course.
 
rate snapshot ...
Preferred options remain relatively stable but a few others starting to drop now - with a couple lenders now below on insured, 3 and 5 yr terms.  

** a reminder - lowest rate is not the same as lowest cost **

For properties priced below $1 million, with less than 20% down payment, example rates would be:
  • 1 yr fixed  6.74% or $6.84 per $1k in mortgage
  • 3 yr fixed  5.19% or $5.92 per $1k in mortgage
  • 5 yr fixed  4.89% or $5.75 per $1k in mortgage
For clarity, a $500,000 at 4.89% on a 25 yr amortization would have payments of 500 x 5.75 = $2,875 monthly.

Note also that rates can change daily, certainly differ between lenders and definitely differ based on down payment, mortgage features and hidden costs.
in Jim's practice ...
FINALLY - we have an archive set up for current and past posts - and one location to send your clients to view - or to link in your own social media/blog/websites

Right Here - or - https://mymortgageplace.ca/mortgage-market-minute/

It's missing a subscription link - and we'll clean it up a bit - but feel free to reference at will.

Have a successful week!  
I'm not sure why anyone would choose someone other than Jim.  Both buying and renewing a mortgage have been so easy and well explained with Jim as our broker.
He does the math and figures out what is best for his clients - both short and long term.
Kincardine is lucky to have him!

(PS, May 2024)
chatwithjim.ca

the best place to refer clients to get questions answered quickly!  No Phone Tag.  They book directly into my calendar to schedule a call!
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Jim Cook is a nationally-recognized broker with some quarter billion in mortgages funded. 
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