Mortgage Advice & Insights

If you have been watching mortgage rates and hoping they will drop soon, the latest movement in the bond market may not be the news you wanted to hear. Bond yields have been climbing around the world, including here in Canada. That matters because Canadian fixed mortgage rates are closely connected to Government of Canada bond yields. When bond yields rise, lenders’ funding costs increase—and fixed mortgage rates usually follow. So, what is pushing yields higher? One major fa

The U.S. Federal Reserve held its key interest rate at 3.625% for the fifth meeting in a row. That may sound like good news, but longer-term U.S. bond yields moved higher after the announcement. Those longer-term yields are important because they can influence fixed mortgage rates here in Canada

Market balance also improved. The sales-to-new-listings ratio rose to 50.2%, moving above 50% for the first time this year. Seasonally adjusted home sales increased 0.5% to 38,014 transactions. While that gain was modest, it represented the third consecutive monthly increase and followed a much stronger 5.5% jump in May.