Why Canadian fixed mortgage rates are rising again

After briefly dipping below 4%, most five-year fixed mortgage rates at Canada’s major banks are back above the 4% mark, and could stay elevated for the foreseeable future, experts say.

Just two months ago, rates had fallen sharply following a plunge in bond yields driven by U.S. tariff concerns.

Canada’s 5-year fixed-mortgage rates are closely tied to the country’s 5-year bond yield, which in turn is influenced by the U.S. 10-year Treasury. That means domestic mortgage rates are often shaped more by global forces than by local economic conditions.