Fixed Mortgage Rates Dip Below 5% but Housing Affordability Still a Challenge
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Some 5-year fixed mortgage rates have dropped below 5% for the first time since May 2023, linked to lower government bond yields
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The drops are only for insured mortgages requiring less than 20% down payment
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Variable rates and HELOCs haven't decreased yet, as they follow the Bank of Canada's overnight rate which hasn't changed
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More affordable mortgages could increase housing demand, meaning more competition and higher purchase prices
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A wave of expensive mortgage renewals in 2023-2026 expected to slow economic growth, though it may pick up by end of 2024