A "For Sale" sign stands near a housing lot in Buffalo Grove, Ill., Monday, March 20, 2023. On Thursday, Freddie Mac reports on this week’s average U.S. mortgage rates. (AP Photo/Nam Y. Huh)Nam Y. Huh
Rates edge lower this week
Most economic indicators, unemployment being a big exception, have materially deteriorated recently. And when the outlook dims, mortgage rates usually drop. That’s what we got this week.
While Canada’s leading rates mostly stayed the same, dozens of less competitive lenders improved their advertised offers. That helps borrowers who don’t shop around (God forbid) and those who may be stuck with their lender.
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This week, we did see the lowest default-insured four-year fixed rate dip 15 basis points to 4.44 per cent. And on the uninsured side, some major banks have been lowering discretionary pricing on select terms. Nonetheless, mortgage brokers, select regional credit unions, HSBC and/or Ratehub have all of them beat.
In the floating-rate market, HSBC (5.9 per cent uninsured) and True North Mortgage (5.5 per cent insured) still lead all national lenders. Variables will regain their mojo once the Bank of Canada reverses its course on interest rates. Bond market derivatives that track rate expectations imply that will happen this fall.
Rates are as of April 6, 2023, from providers that advertise rates online and lend in at least nine provinces. Insured rates apply to those buying with less than a 20-per-cent down payment, or those switching a pre-existing insured mortgage to a new lender. Uninsured rates apply to refinances and purchases over $1-million, and may include applicable lender rate premiums. For providers whose rates vary by province, their highest rate is shown.
Robert McLister is an interest rate analyst, mortgage strategist and editor of MortgageLogic.news. You can follow him on Twitter at @RobMcLister.