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With the U.S. economy outperforming expectations of late, bond yields have shot up like a Gamestop Corp. short squeeze. That’s boosted some of Canada’s leading fixed rates by nine to 25 basis points this week.

Among national lenders, the lowest advertised five-year fixed rates are all back above the psychological four per cent level. Five-year rates remain the lowest of all fixed terms.

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Regionally, it’s like a clearance sale, with providers like Cannect still offering a 3.99 per cent five-year insured rate in Alberta, B.C., and Ontario. But get ’em while they’re hot, because sub-four per cent rates may not last long with rising yields eroding lender profits.

In the week ahead, fixed rates will hinge on some key economic reports — namely Canadian unemployment on Friday and inflation on Tuesday.

For variable-rate enthusiasts, there’s good news: markets are still pricing in a 100 per cent chance of the Bank of Canada slicing off at least 25 basis points from its policy rate on October 23. That would push Canada’s benchmark prime rate down to 6.20 per cent, a number that’s a blast from the 2022 past.

Robert McLister is a mortgage strategist, interest rate analyst and editor of MortgageLogic.news. You can follow him on X at @RobMcLister.  

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Mortgage rates

The rates displayed below are updated by the end of each day and are sourced from the Canadian Mortgage Rate Survey produced by MortgageLogic.news. Postmedia and Imaginative. Online Inc., parent of MortgageLogic.news, are compensated by certain mortgage providers when you click on their links in the charts.

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