Fixed mortgage rates have been falling precipitously in recent weeks, as the cost of financing those loans has gotten cheaper. Bond yields are heading lower largely because investors think the prospects for the economy are looking dim, so they expect interest rates to start moving lower. Lower bond yields are generally "not a good sign from an economic standpoint," says Janine White, vice-president of rate comparison website, Ratesupermarket.ca, "but it's great for mortgage borrowers." That's because cheaper financing costs are allowing the banks to cut their mortgage rates to try to entice borrowers. Variable rates moving lower tooAnd it's a similar story on the variable rate side — albeit for different reasons.

Source: CBC News March 26, 2019 07:52 UTC