For consumers who hold an average of $450,000 in new mortgages, a one per cent increase in
Mortgages originating between 2017 and 2019 would not be exposed to the full cycle of potential rate hikes in the coming years.Article content If rates stay elevated into 2025, the massive borrowing undertaken during the pandemic will feel the full bite of higher ratesOver the past few months, bond yields have been rising on market sentiment that enduring inflation would force the Bank of Canada’s hand when it comes to hiking rates, according to Joey Mack, fixed income analyst at RF Securities Clearing.
If rates don't rise, equity bubbles will burst. If rate do rise, there will be defaults. Damned if we do. Damned if we don't. However, if rates don't rise enough to make fixed income investments worth something, then we might be setting up the biggest crash of all time.