What happened
US consumer prices fell in June — the first monthly decline in six years — while core inflation was essentially flat, taking pressure off the Federal Reserve, as Canadian Mortgage Trends reports.
Here's the connection to your mortgage: Canadian fixed rates are priced off Government of Canada bond yields, and those yields track US Treasury markets closely. When US inflation cools and rate-hike expectations fade south of the border, Canadian bond yields — and eventually fixed mortgage rates — tend to drift down too.
“taking some pressure off the Federal Reserve to raise interest rates” — US CPI falls for the first time since 2020, core gauge flat, Canadian Mortgage Trends
The EverLend take
If you're rate-shopping for a fixed mortgage, keep an eye on this trend — and don't sign the first renewal letter your bank mails you. A rate hold locks today's pricing while leaving room to benefit if fixed rates ease further.
Source & further reading: US CPI falls for the first time since 2020, core gauge flat on Canadian Mortgage Trends.
Wondering what this means for your own mortgage? Talk to an EverLend agent — no cost, no pressure.