Undergraduate students taking out federal direct loans this school year will pay a fixed 5.05 per cent interest rate. That’s a significant jump from the 4.45 per cent rate of the prior school year, and it’s the highest since 2009-10, when it was 5.6 per cent. The rate is fixed, so direct federal loans taken out for the 2018-19 academic year will keep the 5.05 per cent rate. And those with adjustable rate mortgages expecting a rate reset this year will see the rate jump to 5.25 per cent or more. The fed funds rate and mortgages don’t always move in lockstep for a number of reasons.

Source: National Post September 26, 2018 18:31 UTC