What the US-Canada trade war means for the housing market
“Uncertainty is never a good thing, and this is going to affect any number of exporters to the US,” Dominion Lending Centres Group (DLCG) chief economist Dr Sherry Cooper (pictured top) told Canadian Mortgage Professional.
“I know that Ottawa is working on a plan to help cover some of the costs to those companies but nevertheless, this is not good for the economy and not good for the Canadian dollar. And therefore, it probably isn’t good for housing, either.”
Rate uncertainty continues as new tariff chaos begins
For now, Cooper doesn’t see the Bank of Canada moving interest rates when it meets next week (September 2) and still expects it to stay on hold for the rest of the year, although much will depend on the resilience of the economy.
A more pressing question for the mortgage market could be on fixed rates. The five-year Government of Canada bond yield, which leads fixed mortgage rates, has crept steadily higher over the past three months (although it slipped noticeably on Monday morning).
Last week, US long-term interest rates jumped amid growing market nerves about inflation fears, ballooning US government debt, and high corporate borrowing by firms investing in artificial intelligence (AI).
