Oil prices have fallen nearly 10% over the past week, dragging leading fixed mortgage rates down with them. From an advertised rate perspective, leading five-year fixed rates are down 12 to 16 basis points since last Thursday.
Three-Year Fixed Rates Also Dip
The three-year fixed, currently Canada's most popular mortgage term, also slipped, with the insured version falling six basis points. Whispers persist of big banks dealing sub-four percent on uninsured three-year terms. One such bank features a regal golden feline in its branding.
Outlook for Further Relief
Looking ahead, meaningful fixed-rate relief is unlikely until oil cracks below $80 a barrel, a level it has not reached in two months and shows no eagerness to revisit. That would require ample cooperation from Iran, something few seem willing to give U.S. President Donald Trump thus far.
The question is how long Iran can hold out while U.S. warships blockade its main source of government revenue. Analysts speculate it may be as little as a few weeks, due to Iran's exhausted oil storage capacity. However, a Supreme leader disfigured and fatherless because of U.S. bombs might not be thinking rationally.
Robert McLister is a mortgage strategist, interest rate analyst and editor of MortgageLogic.news. He can be followed on X at @RobMcLister.
