Financial Insights That Matter
All eyes were on the stock market this week as U.S. President Donald Trump’s chaotic tariff policy sent global markets into a tailspin, before eventually recuperating when those levies eased.
But bond markets, which mortgage rates are based on, moved wildly as well. First, the Canada five-year bond plummeted to a low of 2.4 per cent before settling in the 2.8-per-cent-range today. That’s a result of investors rushing to the security of bonds when stocks were at their most volatile.
Ron Butler, founder of Butler Mortgage in Toronto, points out that the yield level is now much higher than it was in March and February. With mortgage rates already sitting at multiyear lows, he says we’re bound to see them tick up in the coming days.
That means it’s a good time for mortgage shoppers to get a rate hold on whatever rates they’ve been quoted.
Meanwhile, rocky markets also spell more uncertainty for the direction of variable rate mortgages. Currently, Mr. Butler said the market has priced in a 50-per-cent chance of a Bank of Canada rate cut next week. That compares to markets predicting 70-per-cent odds of a cut before the American tariff chaos played out this week.
The Bank of Canada will announce its interest rate decision on April 16. National inflation numbers will also be released next week on April 15. The BoC will already have made its April interest decision by then, but those numbers will give major clues to what’s coming next in the mortgage market.
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 10.
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