Fixed mortgage rates are back on the rise after Canadian bond yields surged to a 13-year high on Wednesday.
The Government of Canada 5-year bond yield, which leads fixed mortgage rates, has been on a tear, surpassing the 3.20% threshold this week—a level not seen since 2008. It has now risen over 60 basis points in under two weeks, closing higher each day since May 27.
Fixed rates headed to 5%
Given that fixed mortgage rates almost always follow bond yield movements, a new leg-up for fixed rates is all but guaranteed, and has already started.
Multiple national lenders have begun hiking rates for certain terms this week, including most of the big banks like RBC, TD, Scotiabank, CIBC and National Bank of Canada.
Nationally available, uninsured 5-year fixed special rates are now averaging 4.73%, according to data tracked by Rob McLister,…
