Despite recent reports suggesting Canada has entered a technical recession, GTA homeowners and prospective buyers should hold off on celebrating potential rate cuts. Mortgage strategist Robert McLister warns that the latest GDP figures are skewed by volatility in the metals market, with preliminary April data signaling stronger growth than anticipated. Consequently, markets remain locked in on a Bank of Canada rate hike by year-end, driven by persistent inflation uncertainty.
For those navigating the mortgage market, we are seeing subtle shifts: five-year fixed rates have nudged up by five basis points, with uninsured terms now starting at 4.24 per cent. While three-year terms remain a popular choice, currently priced 10 to 20 basis points lower than five-year options, the real battleground remains the variable rate. With banks improving discounts this week, the fate of variable mortgages now rests on the trajectory of core inflation. For a deeper look at the data, read the full analysis at the Financial Post.
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