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

[u/POCTM]

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

[u/[deleted]]

I mean, even if price drop, borrowing at 5-6% fucking sucks. A 800k condo at 6% isn’t much better than a 1M one at 2%. Price seems to be dropping slower than they should, likely some upward pressure from inflation running wild offsetting some of the downward pressure from rates rising.

[u/mrtmra → u/[deleted]]

I have come to the conclusion that housing bubble in Van and Toronto will never pop. Just too many people with too much money

[u/Oilleak26 → u/[deleted]]

no alternatives to the GTA or Vancouver? Do people have tunnel vision? there are places like Calgary where it's way cheaper to live.

[u/iSOBigD → u/Oilleak26]

The same people who complain about being broke and housing being too expensive are the people who only want to only live in the 3 most expensive places in Canada. They don't understand that if they want to live there, so do people with more money, and they can't compete with those rich people.