Greater Toronto Area homebuyers are facing increased pressure as fixed mortgage rates jump in response to rising oil prices stemming from the Middle East. According to a recent report, leading three-, four-, and five-year fixed rates have climbed by another 5 to 10 basis points. This surge is attributed to the escalating price of WTI spot oil, now only 12% below the March 2022 peak, posing a significant inflation threat.
Despite the overall upward trend, some lenders are still offering insured rates near 4%, but these deals are likely to disappear soon. Uninsured mortgages are averaging 25+ basis points higher. Interestingly, three-year rates are slightly cheaper than five-year rates, but experts advise against prioritizing a small discount over long-term financial stability. For more detailed insights and updated mortgage rate information, refer to the original article.
Source: Read the original article
