Katherine Meana

Canada's 5-yr government bond yield surged, pushing lenders to reprice fixed mortgages as global market turmoil added pressure to borrowing costs and housing expectations.
The 5-yr yield sat ~90 basis points above its yearly level and ↑40 basis points in under two weeks, highlighting how quickly fixed-rate pressure built.
An expert said buyers with earlier rate holds could feel pressure to act, while condo shoppers had more breathing room because supply remained available.
The same expert said desirable areas still saw bidding wars, while rising bond yields and fixed mortgage costs complicated searches and slowed the later-year pace.
Variable-rate borrowers also faced uncertainty, prompting some to consider locking into fixed rates, although the expert still expected many tired buyers to keep moving.

Canada’s Bond Jitters Meet Mortgages

Canada's housing market softened recently, with activity ↓~7% yearly and national sales ↓<1% MoM as buyers weighed trade tensions, oil prices, and inflation worries.
Rising Canada bond yields added pressure to fixed mortgage rates, yet an industry expert still expected Late-Q3 and Q4 activity to stay busy.
Canada's central bank recently held its policy rate, while inflation stayed near ~3% for a second month and some economists saw room for 2027 easing.
For the rest of 2026, one expert expected either no change or one small hike, then possible cuts in 2027 as conditions improve.
The biggest rebound catalyst remained a US trade deal, while buyers were urged to watch the next 6 to 12 mo and stay ready.