Owen Sound Real Estate Weekly Recap Jan 21/2024 Local & National Real Estate Breaking News.

Better Dwelling: Canadian Mortgage Rates May Resume Climb As Bond Yields Surge

Article Summary: 

  • Bond yields had dropped from a peak of 4.41% to 3.17% at the end of the year.

  • The decline in bond yields was expected to keep mortgage rates low.

  • Bond yields are now rising rapidly due to inflation expectations.

  • The Government of Canada 5-year bond yield opened at 3.5%, up by 0.23 points in a week.

  • It's uncertain if this trend will continue, but it may prevent further declines in mortgage rates in the near term.

Jan 15, 2024

Bank of Canada surveys show inflation expectations are coming down 

Article Summary: 

  • Bank of Canada surveys show decreasing inflation expectations.

  • Higher interest rates help ease inflation and slow price increases for businesses.

  • Consumers see lower inflation for goods but expect higher inflation for services like rent.

  • Persistent wage growth may keep inflation above the central bank's target.