This Week’s Top Stories: Canadian Mortgage Rates Set To Rise and Home Prices Expected To Fall

Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Mortgage Rates Set To Rise As Lender Margins Collapse Canadian fixed-rate mortgages are set to surge as bond yields continue to rise. The Government of Canada bond yields jumped 15 basis points (bps) to 3.65% on Thursday, the highest since May 2024. Since February 2026, the yield surged 92 bps, but mortgages didn’t follow as they typically do. National Bank economists warn this is due to lenders absorbing the hikes. They note this is unsustainable, and expect rates to start climbing in the coming weeks. Continue Reading… Canadian Home Prices Only Have One Path Forward: BMO The Bank of Canada’s Housing Affordability Index improved for an 11th straight quarter to 41.3% in Q2 2026. The improvements are driven by rising incomes, falling prices, and lower financing. Despite a sharp improvement, it remains much higher than 2019 and out of reach for most buyers. A fragile economy and fast rising bond yields leave only one lever for affordability—lower prices. BMO Capital Markets warns investors this is the reason they remain bearish on prices. Continue Reading… Canadian Mortgage-Backed Bonds Get U.S. Discl...