Since the fall of 2023 we have been fortunate to witness a slow and steady decline of the post Covid highs. This downward trajectory came to a sudden halt with the start of the war with Iran.
We have seen upward pressure on Bond rates, which has directly resulted in several increases in both 3 and 5 year term rates. Virtually all mortgage lenders have announced several consecutive rate increases across the board, totaling between 30 and 50 basis points, depending on the product and lender.
Hopefully the end of the war is in sight and we will soon see the bond market settle down and lenders begin to drop their fixed rate offerings back to where they were just a few weeks ago, and hopefully rates will resume their downward trajectory.
With 3 year term mortgages and Variable rate mortgage the most popular options with our clients, the Variable rate option has become an even more attractive option than ever.
As long as you are comfortable with the uncertainty of Variable rate mortgages it is playing out to be a smart bet. If you aren’t comfortable with the Variable rate option then we will keep our fingers crossed, that rates on the 3 and 5 year term will soon come down.
If you want more insight on your specific situation or need some advice, please reach out!
Mark