Canadian Bond Yields Hit Four-Month High

Mortgage rates in Canada have seen significant cuts, particularly for short-term fixed rates, but rising bond yields suggest that further increases are likely, especially for insured rates. Fannie Mae has revised its 2025 forecast for existing-home sales down to a 4% increase, largely due to unexpectedly high mortgage rates projected to remain above 6% through 2026, which will likely constrain housing activity. In the U.S., existing home sales rose by 3.4% in October, marking the first annual gain since 2021, as buyers become more active, though affordability remains a concern due to high prices and interest rates. The Federal Reserve's outlook has shifted toward a more cautious stance, with fewer rate cuts anticipated, implying continued high borrowing costs for consumers. Meanwhile, South Africa's housing market is showing signs of recovery following recent interest rate cuts, which are anticipated to improve affordability and stimulate home loan activity. Overall, while some markets are experiencing positive momentum, concerns about mortgage rates and affordability persist globally.