Oil prices are above $100 a barrel, and that has real implications for Edmonton homebuyers. Here’s a quick look at what’s happening, why it matters, and what you might want to think about before your next move.
Watch my video or read on for more details:
Why Oil Prices Matter For Inflation
Oil is a core input for manufacturing, shipping, and almost every product that moves by truck or rail in Canada. When oil prices rise sharply, the cost of moving goods goes up and that tends to push prices higher across the board.
We’ve seen this before. In 1973, a Middle East conflict caused oil prices to triple. What followed was a decade of rising inflation and rising interest rates, eventually reaching 18–20% in the early 1980s. In the mid-2000s, a dramatic run-up in oil prices was part of what set the stage for the 2008 financial crisis.
History doesn’t repeat itself perfectly, but it’s worth paying attention.
What This Means For Mortgage Rates
Nobody knows exactly where rates go from here. But with oil above $100 and inflation pressure building, there’s potential for rates to rise. That changes the math for buyers who are on the fence about fixed versus variable.
If you’re planning to buy a home this year, a 5-year fixed rate is worth a serious look. You trade some flexibility for payment certainty and in an uncertain rate environment, that certainty has a lot of value.
What This Means in Everyday Life
- Gas in Edmonton is over $1.50/litre
- In Eastern Canada, it’s closer to $1.80/litre
- Diesel is up to $2.36/litre
Diesel moves nearly everything in this country, by trains and trucks. Those costs work their way through supply chains and show up in the everyday items we buy.
What To Do If You’re Buying a Home Soon
- Talk to a mortgage broker before rates move further.
- Run the numbers on fixed vs. variable for your specific situation.
- Don’t assume rates will stay flat or come down in the near term.
Whether you are preparing to buy your first home or your fifth, if you’re looking to get pre-approved for a mortgage in Edmonton, fill out my online application. I’m here to help you every step of the way.
About Jason Scott, Edmonton Mortgage Broker
Looking for a personalized mortgage solution? As an Edmonton Mortgage Associate, I’m trusted partner who will help you get the right mortgage for your home or investment property. I’m Jason Scott, and I’ll be your Mortgage Broker in Edmonton.
