Global News ~ August 7th, 2024
Canadians gearing up for a run at the fall housing market and existing homeowners with a mortgage renewal looming might see interest rates heading down in the weeks ahead thanks to recent market volatility, experts tell Global News.
Stock markets around the world largely recovered Tuesday from a global selloff triggered by weak jobs data in the United States. But that volatility in equities also impacted the bond market, a key driver for fixed mortgage rates.
The five-year government of Canada bond yield, which lenders use to gauge their five-year fixed-rate mortgages on offer, briefly dipped below three per cent this week for the first time since last spring.
Penelope Graham, mortgage expert at comparator site Ratehub, says the bond market is typically a “safe haven” for investors in times of volatility in the stock market. Traders pile into bonds during signs of trouble, pushing prices higher and yields down.
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