These four things will determine if mortgage rates keep sliding lower

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Mortgage rates are tiptoeing into the new year on a quiet note. Only one leading rate has changed in the last two weeks, which is not uncommon in the slow holiday season. That rate is the uninsured four-year fixed, which dipped five basis points since our last report.

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Bond markets, the merry puppeteers of fixed mortgage pricing, remain in wait-and-see mode. Traders await four revelations this month:

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1. What trade and fiscal policies Trump orders post-inauguration;
2. What the Bank of Canada and the United States Federal Reserve do at their Jan. 29 meetings;
3. What next week’s employment reports reveal; and
4. How inflation evolves later this month. 

Xem thêm : Insights for January 02, 2025

A combination of the above will help determine if Canadian mortgage rates continue their downward drift.

Xem thêm : Here is where experts say mortgage rates could go in the New Year

Meanwhile, for most new borrowers with stable provable income and solid finances, snagging a three-year fixed in the low fours is the sweet spot. Three-year terms provide a balanced risk-reward trade-off, are priced lower than other terms, and entail less prepayment penalty risk than longer fixed mortgages.

 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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Mortgage rates

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

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