The figures, which follow the sixth rise in overnight rates of the year, come as interest in short-term fixed-rate mortgages has increased. This may suggest that homeowners and investors are looking to see how market conditions will deal with the last possible rate hike of the year on December 7. “Locking in a fixed-rate mortgage for a year or two with the intention of riding out the current volatility in the mortgage market is a strategy that may work for some and not for others,” said Victor Tran, RATESDOTCA mortgage and real. real estate expert, in a press release sent to CTVNews.ca. “For those who have exhausted their housing costs and can’t afford another increase, locking in a long-term fixed rate may be a better option,” says Tran. “Also, short-term fixed rates are slightly higher than five-year fixed rates right now, so consumers would pay more to pursue this strategy.” According to Ratesdotca, mortgage rates for primary properties fell 59 percent and vacation properties plummeted 64 percent month-over-month in October. After peaking for the year in September, investment property mortgage rates fell 60 percent month-on-month in October. Additionally, rates for new mortgage purchases fell the same percentage (60) in October, and rates for renewals and refinances fell 51 percent month-over-month. Ratesdotca also said the preference gap between fixed and variable rate mortgages is narrowing, “with only a 56 basis point difference between the number of rates for both product types in October”.
