Mortgage Rate Forecast
The panic sent Canadian bond yields down sharply
BCREA
HIGHLIGHTS
- COVID-19 sends interest rates plummeting
- Canadian recession unavoidable
- Bank of Canada cutting rates, but how low?
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Mortgage Rate OutlookThe growing fears of the potential impact of COVID-19 resulted in a full market meltdown in late February, sending equity markets into free fall and global bond yields plummeting. On top of an already volatile situation, two of the world’s largest oil producers, Saudi Arabi and Russia, have engaged in a price war that sent oil prices to levels not seen since the late 1990s.The panic sent Canadian bond yields down sharply and prompted emergency rate cutting by the Bank of Canada. Variable and 5-year fixed qualifying mortgage rates have followed bond yields lower with the 5-year fixed rate reaching 2.59 per cent, its lowest level since 2016 and very near its lowest level on record.