Posted 12/2/2023, 1:00:02 PM
Falling Bond Yields Point to Cheaper Mortgages Coming for Canadians
- Bond yields falling recently which could mean cheaper fixed-rate mortgages soon for Canadians
- Banks use bond yields as a benchmark for setting fixed mortgage rates, usually adding 1-2 percentage points on top
- Drop in 5-year Canada bond yield from October highs signals possible rate cuts coming earlier than expected
- If lower yields sustain, could spur renewed interest in variable rate mortgages and housing market
- But Bank of Canada still signaling higher rates for longer, unlikely to hint at cuts until inflation fight secured