It's been a trying two months for mortgage originators. As if 50 bps of post-BoC-pause rate tightening wasn't bad enough, yields surged even more. The benchmark 5-year Canada Mortgage Bond, for example, climbed 80 bps in that timespan.
Several new long-term rate highs were made in the process. But here's the thing about new highs. They don't mean as much if there's no follow-through.
The $2+ trillion question is now this: what are the catalysts for follow-through? (Canada's mortgage market is ~$2.08 trillion, to be precise.)