Mortgage Rates Drop to One-Year Low Amid Inflation Rise and Expected Central Bank Cuts

Mortgage rates have recently dropped to their lowest levels in over a year, with the average 30-year fixed mortgage rate falling to 6.19%, down from 6.27% the previous week, providing relief to homebuyers amid a softening housing market. Despite a slightly hotter inflation report in Canada, markets expect the Bank of Canada to cut interest rates soon, potentially lowering borrowing costs further. Experts recommend that buyers consider locking in mortgage rates to protect against future fluctuations, as rates remain subject to change based on economic data and Federal Reserve actions. The decline in mortgage rates, combined with decreasing home prices, is increasing housing affordability, driving a rise in home sales. Additionally, student loan refinance rates have also begun to fall, with some lenders offering fixed rates as low as 3.99% APR, offering potential savings for borrowers seeking to reduce their loan costs.