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Five Posts to Kick Off the New Year

Monday Morning Interest Rate Update for January 3, 2023

by David Larock

I hope you had time to relax and recharge over the holiday season.

I will be back to my regular Monday Morning Updates next week, and in the meantime, here are links to five recent posts to get you caught up:

  1. These are my most important observations about our current interest rate environment as we head into 2023.
  2. Here is my take on whether the Bank of Canada’s policy rate has finally peaked.
  3. This post explains how trigger rates work for Canadian variable-rate mortgages, which come with fixed payments (and it also assuages fears that trigger-rate resets will soon lead to a US-style housing-market meltdown).
  4. Here is my take on why inflation may take longer to come down than the consensus expects.
  5. This post offers my detailed breakdown of the US Federal Reserve’s last jumbo-sized rate hike.

Toronto mortgage ratesThe Bottom Line: Government of Canada bond yields have surged higher over the holiday break, and there is less air under our fixed rates as a result. Given that, the momentum arrow for fixed rates is pointing up over the near term.

Variable-rate borrowers may be in for another 0.25% rate hike by the Bank of Canada at its next meeting on Jan 25, but that will likely mark their peak for the current cycle.

David Larock is an independent full-time mortgage broker and industry insider who helps Canadians from coast to coast. If you are purchasing, refinancing or renewing your mortgage, contact Dave or apply for a Mortgage Check-up to obtain the best available rates and terms.
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