Rates - what's happening today

Today’s geopolitical tensions involving Iran are beginning to ripple through financial markets. One of the early effects we’re seeing is upward pressure on bond yields. Since fixed mortgage rates are largely tied to bond yields, this can put pressure on fixed rates to move higher as well.

On the variable side, things remain more stable for the moment. The Bank of Canada is not widely expected to increase rates at its meeting this month. However, if the conflict continues and pushes oil prices higher, that could feed into inflation. Rising inflation could eventually force the Bank of Canada to consider rate increases sooner than markets currently expect.

So what does this mean for borrowers?

Right now, there isn’t a clear “one-size-fits-all” answer between fixed and variable. Fixed rates could drift higher if bond yields continue rising, while variable rates appear steady in the near term but carry longer-term uncertainty tied to inflation and global events.

If you’re thinking about locking in a rate or making a change, the best approach is to look at your personal risk tolerance, timeline, and financial goals. In uncertain markets like this, a conversation about strategy is often more valuable than trying to time the market perfectly.

If you’re unsure whether locking in makes sense for you today, feel free to reach out and we can review your options together.