Rate Cuts and Market Volatility
Canadian mortgage rates are declining again after a brief increase tied to rising bond yields. Major lenders like Scotiabank, TD, and CIBC have cut select rates by 10-20 basis points. The average 5-year fixed rate has dropped from 5.82% in October to 5.07%. U.S. Treasury movements impact Canadian bond yields, leading to fluctuations. Positive U.S. employment data has adjusted market rate-cut expectations, with central banks cautious about acting prematurely. Forecasts suggest the Bank of Canada’s overnight target rate may return to at least 4.00% by year-end.
What is your outlook on the future of Canadian mortgage rates, considering the ongoing market volatility? Share your thoughts!