Mortgage rates heading up.
Just one day after the Bank of Canada said it would not deliver on a widely expected interest rate cut, Canadian banks have begun to raise fixed mortgage rates.
CIBC was the first to move. Late Wednesday, it announced across-the-board rate hikes for all of its fixed mortgage terms, effective Thursday. TD Canada Trust soon followed and other banks are expected to join them.
Many analysts said the central bank effectively signalled an end to its recent rate-cutting campaign. Some observers said the next rate move by the Bank of Canada would likely be a hike next year.
Right after the central bank's announcement, yields in the bond market jumped on the expectation of higher inflation down the road. Fixed-rate mortgage rates tend to move higher when long-term bond yields rise.
Read full story
How does the mortgage rate hike affect you?
More...
Just one day after the Bank of Canada said it would not deliver on a widely expected interest rate cut, Canadian banks have begun to raise fixed mortgage rates.
CIBC was the first to move. Late Wednesday, it announced across-the-board rate hikes for all of its fixed mortgage terms, effective Thursday. TD Canada Trust soon followed and other banks are expected to join them.
Many analysts said the central bank effectively signalled an end to its recent rate-cutting campaign. Some observers said the next rate move by the Bank of Canada would likely be a hike next year.
Right after the central bank's announcement, yields in the bond market jumped on the expectation of higher inflation down the road. Fixed-rate mortgage rates tend to move higher when long-term bond yields rise.
Read full story
How does the mortgage rate hike affect you?
More...
