A person walks past multiple for-sale and sold real estate signs. Mortgage rates in Canada are up in every term mortgage Robert McLister tracks, except the 10-year fixed.Nathan Denette/The Canadian Press
Mortgage rates jump again
In the last eight days, mortgage rates are up in every term I track, except the 10-year fixed, which no one wants anyway.
We’re talking at least 20 bps of increases in almost every case. That means new borrowers are paying at least $11 more per month, per $100,000 borrowed, than they did at the beginning of last week.
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Driving the uptrend is the market reaction to our inflation-preoccupied central banks. Aside from the Bank of Canada’s last 25 bps rate hike on June 7, it and the U.S. Federal Reserve have signalled that more hikes may be en route. Bond yields, which usually drive fixed mortgage rates, have run higher as a result.
We’ll see if rates top out near October’s 15-year high. For that to happen, we need some ugly economic data, including more job losses. That’s unfortunately how monetary policy works – if we ever want to see 2 per cent inflation again.
Rates are as of June 15, 2023, from providers that advertise rates online and lend in at least nine provinces. Insured rates apply to those buying with less than a 20 per cent down payment, or those switching a pre-existing insured mortgage to a new lender. Uninsured rates apply to refinances and purchases over $1-million and may include applicable lender rate premiums. For providers whose rates vary by province, their highest rate is shown.
Robert McLister is an interest rate analyst, mortgage strategist and editor of MortgageLogic.news. You can follow him on Twitter at @RobMcLister.