Bond yields jumped this week as the commercial break in U.S.-Iranian "peace" ended, sending oil prices skyward. That was followed by Friday's perky Canadian jobs report, which was of no help to rate cut dreamers.
Meanwhile, with U.S. free trade negotiations stalled at the border and inflation still uncertain, nearly all indications point to flat or higher mortgage rates in the weeks ahead.
Fixed Rates Hold Steady
For those who need long-term financing, fixed rates are holding steady. Five-year money is sitting just under four per cent for default-insured borrowers and in the low-to-mid fours for uninsured mortgages.
The week's only rate move worth mentioning came in the one-year default-insured space. True North Mortgage owns that market, and its chart-topping offer climbed 30 basis points to 4.29 per cent.
Bank of Canada Expected to Hold
On Wednesday, the Bank of Canada will likely hold its key interest rate for the sixth straight time, given all the slack in the economy. Rate historians will note that the central bank can sit still longer than expected, with the record being 34 consecutive meetings starting in 2010.
According to mortgage strategist Robert McLister, "nearly all indications point to flat or higher mortgage rates in the weeks ahead."
