As you know by now, fixed interest rates are directly correlated with bond yields. The current Canadian bond yields show that bond yields have come back down after a 30 basis point run up over the past four or five weeks.
There had been a lot of speculation that the US and Canadian job reports would indicate better growth, which meant a likely scenario of rate increases. Thankfully for home buyers, that didn’t materialize, so we didn’t see any massive rate increases – with one exception.
In fact, today I received a notification from Street Capital that they had reduced rates. Go figure.
In any case, there may be some short-term ups and downs over the next few weeks depending on the economic news of the day…but my prediction for higher rates over the next 6-8 months still holds.