Fixed mortgage rates are back on the rise after Canadian bond yields surged to a 13-year high on Wednesday.
As was widely expected, the Bank of Canada raised its benchmark lending rate by 50 basis points on Wednesday, bringing it to 1.00%.
All eyes will be on the Bank of Canada's rate decision on Wednesday, which could see the largest rate hike in over 20 years.
As fixed mortgage rates continued to rise last week, variable-rate holders are expected to see their own increase next week.
After tumbling in late February, Canadian bond yields have since bounced back and beyond, reaching a three-year high on Wednesday.
Despite the prospect of higher interest rates ahead, nearly three-quarters of mortgage holders say they could handle a 20%+ rise in monthly payments.
Moscow’s malevolence and persistent inflation are changing the rate outlook weekly. Divining rate direction, even near-term, has become almost pointless.
The Bank of Canada surprised markets somewhat today by leaving its key lending rate unchanged. It did, however, send a clear signal that rate hikes are imminent.
Over the past couple of weeks, markets have increasingly adopted the view that the Bank of Canada will move up the timing of its first rate hike to this week.