Mortgage rates below 4% can still be found in some provinces

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As the U.S. economy has outperformed expectations recently, bond yields have skyrocketed like Gamestop Corp. Short squeeze. That pushed some of Canada's leading fixed interest rates up nine basis points to 25 basis points this week.

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

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Regionally, it's like a sellout, with providers like Cannect still offering a five-year insurance rate of 3.99 percent in Alberta, BC and Ontario. But buy them while they're hot, because interest rates below four percent may not last long as rising yields eat into lenders' profits.

In the coming week, fixed rates will depend on some important economic reports namely Canadian unemployment on Friday and inflation on Tuesday.

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There's good news for variable rate lovers: Markets are still pricing in a 100 percent chance that the Bank of Canada will cut its key interest rate by at least 25 basis points on October 23. That would push Canada's key interest rate down to 6.20 percent, a number that is a real blast from 2022's 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 interest rates

The interest rates shown below are updated at the end of each day and come from MortgageLogic.news' Canadian Mortgage Rate Survey. Postmedia and imagination. Online Inc., parent company of MortgageLogic.news, will be compensated by certain mortgage providers if you click on their links in the charts.

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