There was some movement in the mortgage market last week worth noting.
Bond yields spiked, which pushed fixed mortgage rates slightly higher. Fixed-rate mortgages are closely tied to the bond market, so when bond yields rise, lenders often adjust fixed rates upward as well.
Variable rates, however, have not changed. That’s because variable mortgages are tied to the Bank of Canada’s overnight rate, which has remained steady for now.
Interestingly, the latest Canadian jobs report came in weaker than expected. The report showed job losses and a rise in unemployment, which has increased speculation that the Bank of Canada could consider rate cuts later this year.
If that happens, variable mortgage rates could move lower.
For buyers trying to decide between fixed and variable, this is something important to keep in mind. Fixed rates provide stability and predictable payments, while variable rates could benefit if rate cuts occur later in the year.
As always, the right choice depends on your comfort level, timeline, and financial goals.
If you have questions about what this could mean for your purchase or mortgage strategy, feel free to reach out.
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