Are you curious about what’s driving mortgage rates and how this affects your housing plans? Here’s the latest on Canadian bond yields, the Bank of Canada’s upcoming rate decision, and current trends in the Southern Ontario housing market.

📈 Bond Yields: Why Are They Important?

The 5-year Government of Canada bond yield has eased to 2.8%, down from a peak of 3.1% in early October. Bond yields heavily influence fixed mortgage rates, so this recent stability is great news for potential buyers and homeowners alike. The latest rate hikes were triggered by unexpected job growth in the U.S. and rising oil prices, which caused Canadian yields to spike as banks protected their profit margins. However, these yields seem to be stabilizing, which could signal less volatility ahead for fixed mortgage rates.

🏦 Upcoming Bank of Canada Rate Decision

With the next Bank of Canada announcement approaching, all eyes are on how it could impact variable rates. The central bank’s decision will directly influence borrowers with variable-rate mortgages, but it also affects the broader bond market. If the Bank of Canada cuts rates to support economic growth, this could further reduce borrowing costs and stabilize bond yields, making now a strategic time to consider your options.

🏠 What’s Happening in the Southern Ontario Housing Market?

Southern Ontario remains a hotspot for real estate activity. Despite rate hikes, demand persists as many homebuyers seek to lock in rates and explore their options. Population growth continues to fuel the market, while limited housing supply puts upward pressure on prices. However, potential buyers should note that lenders have recently widened the spread between bond yields and mortgage rates, prioritizing shareholder profits over passing savings on to consumers. As rates stabilize, it’s an excellent time to reassess your home-buying or refinancing strategy.

🤔 Ready to Explore Your Options?

Whether you’re a first-time homebuyer or a current homeowner, understanding your mortgage and home value is essential. Reach out today for a free housing report. We’ll provide an updated home valuation and explore options to save on your mortgage. Let’s navigate the current market together and make the most of today’s opportunities.

Stay informed with the latest trends, and explore how these shifts could impact your financial future. Contact us today to get your customized housing report!

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Adam Walker
Owner, Mortgage Agent
Walker Mortgages
226-567-4274
‍[email protected]‍
‍www.adamwalkermortgages.com