Why Fixed Mortgage Rates Likely Won't Follow the Bank of Canada Cuts

In recent weeks, the Bank of Canada’s rate cuts have stirred hope that mortgage rates, especially fixed rates, might begin to fall. However, homeowners and investors should know that fixed rates don’t necessarily follow these central bank cuts.

While it's true that variable rates are directly impacted by the BOC rate announcements, fixed rates are influenced by different factors i.e. the bond markets in Canada and the US. So fixed rates may stay steady, remain near current levels or even fluctuate up and down. 

Understanding the forces that keep fixed rates steady can help Canadians make more informed mortgage decisions in this evolving market.