Higher mortgage rates will add more downward pressure on housing prices, economists say
- Posted on September 17, 2026
- By The Globe and Mail
- 1 Views
- 1 min read
In brief
Rising mortgage rates in Canada are creating significant headwinds for the housing market, with economists warning of continued price depreciation ahead. As the five-year bond yield reaches its highest point this year, lenders are adjusting their mortgage rates upward, reducing purchasing power for homebuyers and dampening demand. This tightening cycle reflects broader monetary policy concerns and could reshape the real estate landscape across Canada throughout the coming months.
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Higher mortgage rates will add more downward pressure on housing prices, economists say
Canada five-year bond yield, which greatly affects how mortgage lenders set their rates, jumped to highest level since 2024
