Mortgage Rates Rise Amid Inflation Concerns, Experts Warn

Mortgage experts are expressing uncertainty regarding the future of mortgage rates in Canada, attributing the unpredictability to recent volatility in the bond market and external factors such as inflation in the U.S. and political changes. The Canadian 5-year bond yield has experienced significant fluctuations, reflecting concerns over inflationary pressures that could affect interest rates. Predictions for the Bank of Canada's policy rate are widely varied, with estimates ranging from 2% to 3% based on differing economic assessments. Similarly, recent U.S. inflation data suggests that rising prices are likely to influence borrowing costs, with the average 30-year fixed mortgage rate recently reaching 7.01%. As inflation continues to be a critical factor, both Canadian and U.S. markets are bracing for potential impacts on mortgage rates, complicating the outlook for homebuyers and homeowners looking to refinance. The interplay of domestic inflation trends and international economic developments is expected to shape the financial landscape in the coming months.