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Mortgage Rates Rising as Bond Yields Surge
Author:
Steve Huebl
Publication date:
October 12, 2021
Article Summary:
Several Canadian lenders, including RBC, BMO, and National Bank of Canada, have raised interest rates over the past week in response to rising bond yields, which generally lead fixed mortgage rates. Canada’s 2-year bond yield closed above 0.73%, surpassing 0.77% on Wednesday, the highest level since March 2020, while the 5-year bond yield climbed above 1.27%, the highest since February 2020. According to rate expert Rob McLister, fixed mortgage rates could easily approach their highs of last year before too long, taking them up at least 50 basis points by 2022 compared to today. In addition, a new report by the Smart Prosperity Institute estimates that an estimated 1 million homes need to be built in Ontario over the next decade to meet homebuyer demand.
Keywords:
mortgage rates, rising bond yields, lenders, RBC, BMO, National Bank of Canada, Desjardins, Simplii Financial, Investors Group, Canada Life, inflation, labor shortages, supply/demand imbalances, Government of Canada 5-year bond yield, U.S. 2-year yield, rate expert, Rob McLister, $300,000 mortgage, interest, BC Real Estate Associate, rate outlook, fixed rates, variable rates, Bank of Canada, prime rate, GDP, Ontario, new homes, Smart Prosperity Institute, housing demand, population growth.
Source Citation:
Steve Huebl
Mortgage Rates Rising as Bond Yields Surge
October 12, 2021
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