Financial Insights That Matter
A streetcar passes a home for sale in Toronto’s east end on Sept 24.Fred Lum/The Globe and Mail
A similar situation of falling yields played out in the bond market after U.S. President Donald Trump’s global tariff announcement on Wednesday.
It’s a familiar story for anyone who has been watching how markets react after each of Mr. Trump’s tariff announcements. The Canada five-year bond yield, the performance of which mortgage providers largely base their fixed mortgage rates on, fell from a high of 2.63 Wednesday afternoon before the announcement to a low of 2.52 Thursday morning.
It’s more downward pressure on mortgage rates that have already been dropping significantly in the previous month. If the trend continues, it could take a few business days for lower mortgage rates to materialize.
But bonds have also bounced back when Mr. Trump backs down from his tariffs, something that has happened multiple times now. That means if you’re shopping for a home or renewing your mortgage, it’s imperative to get a rate hold now in case they rise. Providers typically allow you to lock in a quoted rate for multiple months, depending on the lender. You can always get a lower rate before you finalize your mortgage.
The U.S. government’s economic policies have been anything but predictable for the past few months, and decisions south of the border have a massive impact on our markets. Locking your rates gives you a little bit of stability in an uncertain time.
Mortgage rates sourced by Ratehub.ca. For a comprehensive list of today’s mortgage rates for each term/type, visit: https://www.ratehub.ca/best-mortgage-rates
Ratehub.ca is a mortgage rate comparison marketplace and mortgage brokerage. They help millions of Canadians compare and obtain the best mortgage rates, credit cards, insurance, deposits and loan products.
Rates shown are the lowest available for each term/type and category (insured versus uninsured) as of market close on Thursday April 3.
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