Mortgage Rates Hold Steady Despite Hotter Than Expected Inflation Data

The lowest advertised 5-year fixed mortgage rates were mostly stable this week, with a very slight easing for default-insured fixed rates after bond yields plunged.

Inflation data in the U.S. came in hotter than expected, putting pressure on Canadian yields and rates. The Bank of Canada gets an inflation reality check on Tuesday.

If oil prices rebound, it could drive up inflation expectations, leaving the Bank of Canada little choice but to hike rates again at its October meeting.

Rates were sourced from the MortgageLogic.news Canadian Mortgage Rate Survey on October 12, 2022. Rates apply to minimum 9 provinces.

Higher U.S. inflation and weak bond auctions are pressuring rates on both sides of the border, which remain in a longer-term uptrend. Tuesday's Canadian inflation report likely won't look good.