Monday Morning Interest Rate Update

Dog reading book with glasses.

I was away last week so there is no new post today.

I’ll be back next Monday, and in the meantime, here are several links to recent popular posts:

1. Why Canadian Inflation Is About to Move Higher

In this post I explain why base effects pushed Canadian inflation down to its current level of 2.8% and why their diminishing impact will cause inflation to turn higher over the remainder of 2023.

2. The Bank of Canada Tightens Again

This post offers my take on the Bank of Canada’s (BoC) latest policy statement, Monetary Policy Report, and press conference on July 12.

3. Mortgage Advice: The Best of Today’s (Lousy) Mortgage-Rate Options?

Mortgage rates have risen rapidly of late and, in this post, I offer my take on how to navigate today’s difficult rate environment.

4. The Reinvigorated Real-Estate Sector Compelled the Bank of Canada to Hike

In this post I explain why the BoC isn’t likely to stop raising its policy rate, let alone start cutting it, until our regional real-estate markets are performing much differently than they have been thus far in 2023.

The Bottom Line: Government of Canada bond yields were range bound last week. But lenders continued to raise their fixed rates, and gross lending spreads are now the widest they have been in some time.

Fixed mortgage rates have likely leveled off, for now.

Variable mortgage rate discounts were unchanged last week. As per the themes in posts I link to above, I continue to believe that at least one more 0.25% BoC is possible this year and that rate cuts are probably still a long way off.