Robert Mclister

Robert McLister: The latest increases may have people on edge, but the real suspense is all about what comes next

Robert McLister: Bank of Canada expected to bring out the chainsaw and slash rates on Wednesday You can save this article by registering for free here . Or sign-in if you have an account.

Robert McLister: Every borrower wants to know where the central bank will take rates next, and the bond market could give us those clues

Robert McLister: In order for them to fall much more, markets need to believe inflation will substantially undershoot target and unemployment will spike

Advertisement 1 Share this Story : Fixed rates unlikely to fall much beyond current ho-hum offerings Fixed rates unlikely to fall much beyond current ho-hum offerings Robert McLister: In order for them to fall much more, markets need to believe inflation will substantially undershoot target and unemployment will spike Author of the article: Article content Bond traders nailed Wednesday's 50 basis point Bank of Canada rate cut like a Vegas bookie who knows the fix is in. Canada's lowest nationally advertised variable rates are now down to 4.70 per cent (insured) and 5.10 per cent (uninsured). Advertisement 2 Article content Fixed rates unlikely to fall much beyond current ho-hum offerings Back to video Compare those to the lowest publicly quoted fixed rates, which are five-year terms at a so-so 4.09 per cent (insured) and 4.64 per cent (uninsured). It's questionable how much progress we'll make on inflation in the next quarter or so. Job numbers have been crushing expectations and the more North America's economy flexes its muscles, the less likely we'll see the prime rate dip more than 50 basis points. Fixed rates are a different animal, however, one not controlled directly by the Bank of Canada . In order for fixed rates to fall much more, markets need to believe inflation will substantially undershoot target and unemployment will spike. The jury's out on those. Advertisement 3 Article content Meanwhile, even with the central bank playing Santa Claus with rates, it's not getting any easier to qualify for a mortgage. The government's stress test still requires borrowers to prove they can afford a rate in the six per cent range, depending on the home loan. For the real estate market to really take flight, it needs borrowers who can get approved for materially heftier loans. That would require a stress test rate down in the mid-fives or below. Robert McLister is a mortgage strategist, interest rate analyst and editor of MortgageLogic.news . You can follow him on X at @RobMcLister Mortgage rates The rates displayed below are updated by the end of each day and are sourced from the Canadian Mortgage Rate Survey produced by MortgageLogic.news. Postmedia and Imaginative. Online Inc., parent of MortgageLogic.news, are compensated by certain mortgage providers when you click on their links in the charts. Can't view the charts on this page? Try clicking here Article content Share this article in your social network Share this Story : Fixed rates unlikely to fall much beyond current ho-hum offerings Comments Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Latest National Stories News Near Elliot Lake Featured Local Savings

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