
Here’s how it works. Our five year mortgages are generally tracked on the yields of government bonds; when the U.S. economy is weak the value of their bonds (and ours) fall, which triggers a drop in mortgage rates. As the U.S. economy improves and bonds increase in value again, mortgage rates rise.
Some economists are forecasting rapid growth for the U.S. economy which could mean some painful rate rise for homeowners in Canada.