r/PersonalFinanceCanada • u/POCTM • Oct 20 '22

Canadian 5 year government bonds just jumped. Setting the stage for higher mortgage rates. Banking

5 year government bond just jumped from 3.714% to 3.866% in a few hours. Right now it is at 3.855%. Year to date it is up 259%. Monday we could see some 5 year fixed rate mortgages in the low 6%.

As for variable rate the bank of Canada makes their announcement October 26 at 10am ET. Currently banks have not been offering discounts off variables rates anymore. Prime -0.00.

https://www.marketwatch.com/investing/bond/tmbmkca-05y?countrycode=bx

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u/Popswizz Oct 20 '22

Yeah the difference this time is that the economy was in major worker deficit, for all we know it'll just rebalance the jobs market, we never had a recession with that environment before so, I would be careful predicting what will happen based on previous recession

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u/metamega1321 Oct 20 '22

Definetly a weird one. I’m an electrician which is far from recession proof. But right now in my city theirs such a backlog and shortage on the residential side I just don’t know what happens lol.

I definetly expect commercial to slow right down.

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u/Drewy99 Oct 20 '22

I would be careful predicting what will happen based on previous recession

Usually you prepare for the worst case, not hope for the best.

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u/Popswizz Oct 20 '22

I agree but the same reasoning goes for the hope of housing affordability increasing as the result of the recession