Data from CREA this week showed that month-over-month sales volume rose 0.9 per cent to 40,423 in October, down 4.3 per cent year-over-year despite lower rates.Sean Kilpatrick/The Canadian Press
Mortgage rates are settling into some of their lowest levels in recent months, but buyers aren’t necessarily snapping at the opportunity.
Three- and five-year fixed rates have come down to the high 3-per-cent range, while the cheapest variable rate is currently 3.45 per cent, after the Bank of Canada’s interest-rate cut in late October. Financial markets aren’t expecting the central bank to announce another cut any time soon, with LSEG data showing the odds of a rate hold in December are now just below 90 per cent.
Meanwhile, data from the Canadian Real Estate Association this week showed that month-over-month sales volume rose 0.9 per cent to 40,423 in October, down 4.3 per cent year-over-year despite lower rates.
Variable-rate mortgages are making a comeback, but some economists are already predicting rate hikes
NerdWallet mortgage expert Clay Jarvis said the numbers show that a bleak economic outlook is still preventing the market from picking up steam.
“Home sales in October were another indication that most buyers are either unwilling or unable to take on the risk of owning a home in the current economic climate,” Mr. Jarvis said in an e-mail.
On the other hand, data from Ratehub.ca show that affordability is improving in most Canadian cities. In Vancouver, for example, average prices were down nearly $10,000 from a month prior. That could translate into roughly $49 in savings on each monthly mortgage payment.
CREA economist Shaun Cathcart said earlier this week that the Canadian housing market is showing some consistent signs of growth. October’s modest growth marks the sixth time in seven months that month-over-month sales have increased.
He predicts the market is poised to strengthen with the impact of lower interest rates in the spring, which is typically the start of busier times for real estate transactions.
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Mortgage rates are sourced by Ratehub.ca. For a comprehensive list of today’s mortgage rates for each term/type, visit ratehub.ca/best-mortgage-rates.
Ratehub.ca is a mortgage-rate comparison marketplace and mortgage brokerage. It helps millions of Canadians compare and obtain the best mortgage rates, credit cards, insurance, deposits and loan products.
Rates shown are the lowest available for each term/type and category (insured versus uninsured) as of market close on Nov. 20.
