Latest in Mortgage News: Fixed Mortgage Rates Could Fall Over Coronavirus Fears

The Wuhan coronavirus is now becoming the world's and Canada's latest economic headwind, with financial markets falling 142 points and New York's Dow Jones ending the day down more than 450 points. Canada's 5-year bond yield fell sharply to a three-month low, signalling that mortgage rates are likely headed lower as well. RateSpy.com founder Rob McLister wrote in the Globe and Mail that the impact of the Wuhan coronavirus on mortgage rates could potentially last until reports of new cases slow significantly. The best widely available, full-featured 5-year fixed mortgage is currently 2.79%, which McLister said could fall closer to 2.50% next month if bonds continue to move lower. Mortgage brokers who have been fearing the era of digital mortgages can breathe a sigh of relief.

A recent survey from RATESDOTCA found that most homebuyers prefer personalized advice from a mortgage broker. However, a majority of mortgage shoppers would be willing to trade in that personalized advice for a digital-only mortgage if it meant they could get a lower rate. A full third of mortgage shoppers rely solely on offline sources when researching mortgages. The top considerations for lenders are getting the lowest interest rate (47%), keeping the total cost of borrowing as low as possible (19%) and clear communication of the conditions and features of their mortgage (14%). HELOC borrowing fell by 0.4% in November, marking the first monthly contraction since October 2015, according to Scotia Economics. This caused the annual growth rate of HELOC borrowing to continue its downward trend, now in its eleventh consecutive month.